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Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangladesh

 
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Author
Amin, Sajeda
Rai, Ashok S.
Topa, Giorgio
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https://www.hks.harvard.edu/centers/cid/publications
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Citation
Amin, Sajeda, Ashok S. Rai, and Giorgio Topa. “Does Microcredit Reach the Poor and Vulnerable? Evidence from Northern Bangladesh.” CID Working Paper Series 2001.28, Harvard University, Cambridge, MA, December 2001.
Abstract
This paper evaluates whether microcredit programs such as the popular Grameen Bank reach the relatively poor and vulnerable in two Bangladeshi villages. It uses a unique panel dataset with monthly consumption and income data for 229 households before they received loans. We find that while microcredit is successful at reaching the poor, it is less successful at reaching the vulnerable. Our results also suggest that microcredit is unsuccessful at reaching the group most prone to destitution, the vulnerable poor. Our main contribution is to explicitly evaluate the targeting of an anti-poverty intervention using the e¢cient risk-sharing framework in Townsend (1994).
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This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page
http://nrs.harvard.edu/urn-3:HUL.InstRepos:39467498

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