Impact of Microcredit on Second Generation Borrowers in Bangladesh: Revisited

Laila Arjuman Ara, Mohammad Masudur Rahman and Chanwahn Kim

South Asia Economic Journal, 2020, vol. 21, issue 1, 142-157

Abstract: This article investigates the economic impact of continuing borrowers’ participation in the microcredit programme on poverty eradication in Bangladesh. A panel data set was collected through a field survey for the years 2013–2016 to identify the impact of a microcredit programme on continuous participation borrowers. The propensity score matching (PSM) method is used to eliminate selection bias and the difference-in-difference (DID) model is applied for the empirical analysis. The findings of the study demonstrate that more benefits are realized from continued participants compared to discontinued participants. JEL: C83, D14, G21, O12

Keywords: Continuous participation; microcredit; poverty; Bangladesh; propensity score matching (PSM); difference-in-difference (DID) (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:sae:soueco:v:21:y:2020:i:1:p:142-157

DOI: 10.1177/1391561420908086

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