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Promotional role of microcredit: Evidence from the Grameen Bank of Bangladesh
Author(s) -
Basher Md. Abul
Publication year - 2010
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1583
Subject(s) - microfinance , longitudinal data , economics , business , economic growth , sociology , demography
This paper investigates whether the income augmenting role of microcredit is attributable only to increased participation of the borrower in economic activities or switch to more productive activities also. The paper provides a framework to analyze this question in absence of any longitudinal data. By using the data from the Grameen Bank of Bangladesh, the paper finds that microcredit enables the borrowers to move progressively into more productive activities as they become experienced. Copyright © 2009 John Wiley & Sons, Ltd.