Economics at your fingertips  

Transformation of Rural Bangladesh: Role of Infrastructure and Financial Institutions

Shahidur Khandker () and Hussain A. Samad

No 128, Working Papers from JICA Research Institute

Abstract: This paper reviews the process of structural transformation and its consequences on the welfare of rural households in Bangladesh. We argue that public investments in roads, electricity, and financial institutions trigger structural transformation, which increases and diversifies rural incomes, raises consumption expenditures, reduces poverty, and increases educational achievements. Data analysis suggests that the average household income goes up by 10 percent and consumption expenditure by 4.7 percent as a result of one additional microfinance institution branch in a village. Grid connectivity and road investment also increase incomes and expenditures, and lower poverty. Analysis also shows that incomes increase more for non-farm sources than for farm sources as a result of infrastructure investments. These developments point to a structural transformation at play in rural Bangladesh.

Keywords: infrastructure investments; electrification benefits; road impacts; Bangladesh (search for similar items in EconPapers)
Date: 2016-04-11
New Economics Papers: this item is included in nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html) ... &file_id=9&file_no=1 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from JICA Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Japan International Cooperation Agency Library ().

Page updated 2024-02-27
Handle: RePEc:jic:wpaper:128