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Banking on the Poor? Branch Location and Nonfarm Rural Development in Bangladesh
Author(s) -
Ravallion Martin,
Wodon Quentin
Publication year - 2000
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00082
Subject(s) - nonfarm payrolls , agriculture , economics , agricultural development , rural development , agricultural economics , business , labour economics , geography , archaeology
The geographic location of banks’ branches is used to test whether they are responding to unexploited gains from nonfarm rural development in Bangladesh. The branch locations of Bangladesh’s Grameen Bank are compared with those of traditional banks. The potential gains from switching out of farming are measured, allowing for heterogeneity in household characteristics conducive to success in nonfarm activities. It is found that many farmers are poorly equipped for success in nonfarm enterprises. Even so, seemingly feasible but unrealized gains from switching are revealed. Grameen Bank is attracted to areas where those gains favor the poor. Other banks appear to put higher weight on gains to those other than the poor.