How Infrastructure and Financial Institutions Affect Rural Income and Poverty: Evidence from Bangladesh

Shahidur Khandker () and Gayatri Koolwal

Journal of Development Studies, 2010, vol. 46, issue 6, 1109-1137

Abstract: The mechanisms by which the poor benefit from economic growth remain a topic of debate in development literature. We address this issue in the context of rural Bangladesh, using a pooled dataset of three household panels between 1991-2001. Expansion of irrigation, paved roads, electricity, and access to formal and informal credit have (through different veins) led to higher rural farm and non-farm incomes, accounting for exogenous local agroclimatic endowments that explain a large part of the variation in the growth of infrastructure and credit programmes. However, this has not translated into substantial reductions in poverty for the poorest households.

Date: 2010
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DOI: 10.1080/00220380903108330

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