| By: |
Woutersen, Tiemen;
Khandker, Shahidur R. |
| Abstract: |
This paper investigates whether the utilization of microcredit programs has a
significant impact on the income and net worth of the participants. Several
micro finance institutes are optimistic on the beneficial effects of
microcredit programs. Others describe microcredit with interest rates in
excess of 20 percent as a poverty trap. This paper uses more than 20 years of
panel data on households in Bangladesh to estimate bounds on the causal
effects of microcredit programs. The analysis rejects the hypothesis that
these microcredit programs are a poverty trap. Moreover, the paper finds
moderately positive effects of such programs. |
| Keywords: |
Access to Finance,Debt Markets,Rural Poverty Reduction,Microfinance,Poverty Monitoring&Analysis |
| Date: |
2014–09–01 |
| URL: |
http://d.repec.org/n?u=RePEc:wbk:wbrwps:7040&r=mfd |