Dynamic Effects of Microcredit in Bangladesh

Khandker, Shahidur R. ; Samad, Hussain A.

World Bank, Washington, DC

关键词: ADVERSE EFFECTS;    AGRICULTURE;    AMOUNT OF CREDIT;    ASSET VALUE;    ASSETS;   

DOI  :  10.1596/1813-9450-6821
RP-ID  :  WPS6821

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses long panel survey dataspanning over 20 years to examine the dynamics ofmicrocredit programs in Bangladesh. With the phenomenalgrowth of microfinance institutions representing 30 millionmembers with over $2 billion of annual disbursement over thepast two decades, it is important to understand the dynamicsof microcredit expansion and its induced impact on householdwelfare. A dynamic panel model is used to address a numberof issues, such as whether credit effects are declining overtime, whether market saturation and village diseconomies aretaking place, and whether multiple program membership, whichis rising as a consequence of microcredit expansion, isharming or benefiting the borrowers. The paper'sresults confirm that microcredit programs have continued tobenefit the poor by raising household welfare. Thebeneficial effects have also remained higher for female thanmale borrowers. There are diseconomies of scale caused byhigher levels of village-level borrowing, especially formale members. Multiple program membership is also growingwith competition from microfinance institutions, but thishas rather helped raise assets and net worth more than ithas contributed to indebtedness.