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Savings Strategies: Evidence from Bangladesh

Matteo Marinangeli () and Andrea Presbitero

Rivista italiana degli economisti, 2013, issue 3, 319-344

Abstract: Microsavings contribute to smooth consumption, cope with emergencies and increase thewelfare of poor households. We use data from an original survey administered to a sample of Bangladeshiwomen, all members of a small microfinance institution (MFI), to analyze the individual socio-economiccharacteristics associated with microsavings. The data show that the poor are financially sophisticated anduse several different (formal and informal) savings devices. We also highlight a positive association betweenthe length of the relationship with the MFI and the propensity to save, especially with formal andsemi-formal devices. While we cannot identify a causal effect of MFI membership, the descriptive evidenceis consistent with the hypothesis that microfinance may contribute to the awareness of the potentialbenefits of savings and expand access to alternative formal savings devices.

Keywords: Microfinance; Savings; Bangladesh. (search for similar items in EconPapers)
Date: 2013
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