Does Micro-credit Program in Bangladesh Increase Household’s Ability to Deal with Economic Hardships?

Serajul Hoque

MPRA Paper from University Library of Munich, Germany

Abstract: It is often argued that micro-credit program intervention at the grassroots level increases the ability of the poor to deal with crises. This paper examines the relationship between households’ involvement in micro-credit programs and their capacities to deal with economic hardships by focussing on BRAC, one of the largest micro-credit providers in Bangladesh. Using RAND data collected in one region of rural Bangladesh, the paper addresses a key question: Do micro-credit programs increase the ability of the poor to deal with crises? The findings in this paper indicate that BRAC’s micro-credit program in Bangladesh may increase participating households’ abilities to cope with economic hardships but further research to much more systematic information needs to be conducted about micro-credit program before conclusive results can be reached.

Keywords: Micro-credit; Economic Hardships; Rural Bangladesh (search for similar items in EconPapers)
JEL-codes: I31 I38 (search for similar items in EconPapers)
Date: 2008-01-10
New Economics Papers: this item is included in nep-agr, nep-cwa and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:6678

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