Dynamic Effects of Microcredit in Bangladesh

This paper uses long panel survey data spanning over 20 years to examine the dynamics of microcredit programs in Bangladesh. With the phenomenal growth of microfinance institutions representing 30 million members with over $2 billion of annual disb...

Full description

Bibliographic Details
Main Authors:	Khandker, Shahidur R., Samad, Hussain A.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ADVERSE EFFECTS AGRICULTURE AMOUNT OF CREDIT ASSET VALUE ASSETS ATTRITION BANK POLICY BENEFICIAL EFFECTS BIDS BORROWER BORROWING CASH TRANSFER COMMERCIAL BANKS CONSUMER GOODS CREDIT ACCESS CREDIT COEFFICIENTS CREDIT EXPANSION CREDIT GROUP CREDIT INCREASES CREDIT PROGRAMS CREDIT RISK CREDIT SCORING DATA ANALYSIS DATA COLLECTION DEBT DEMAND FOR CREDIT DEPOSITS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIMINISHING RETURNS DISBURSEMENT DISECONOMIES OF SCALE DUE DILIGENCE DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELASTICITY EMPLOYMENT EXOGENOUS VARIABLES EXPENDITURE EXPENDITURES EXTERNALITIES EXTERNALITY EXTREME POVERTY FEMALE ENTREPRENEURS FEMALE LABOR FINANCIAL INSTITUTIONS FINANCIAL STUDIES GROUP LENDING GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLD INCOME HUMAN RESOURCES INCOME INCREASING RETURNS INDEBTEDNESS INFORMAL LENDERS INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR ECONOMICS LABOR SUPPLY LABORERS LENDER LOAN LOAN AMOUNTS LOAN PORTFOLIO LOAN RECOVERIES LOCAL ECONOMIES LOCAL ECONOMY LOCAL MARKET LONG-TERM LOANS MARKET CONDITIONS MICRO FINANCE MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MODELING NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY PER CAPITA INCOME POLITICAL ECONOMY POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRODUCTIVITY REGRESSION ANALYSIS RENTS REORGANIZATION RESEARCH WORKING PAPERS RESEARCHERS RETURN SAVINGS SAVINGS ACCOUNT SPECIFICATION ERROR SURVEY DATA TECHNIQUES TEST STATISTICS TRADE SECTOR TRADING WAGES WEALTH WEALTH EFFECT
Online Access:	http://documents.worldbank.org/curated/en/2014/03/19304457/dynamic-effects-microcredit-bangladesh http://hdl.handle.net/10986/18126

id	okr-10986-18126
recordtype	oai_dc
spelling	okr-10986-181262021-04-23T14:03:42Z Dynamic Effects of Microcredit in Bangladesh Khandker, Shahidur R. Samad, Hussain A. ADVERSE EFFECTS AGRICULTURE AMOUNT OF CREDIT ASSET VALUE ASSETS ATTRITION BANK POLICY BENEFICIAL EFFECTS BIDS BORROWER BORROWING CASH TRANSFER COMMERCIAL BANKS CONSUMER GOODS CREDIT ACCESS CREDIT COEFFICIENTS CREDIT EXPANSION CREDIT GROUP CREDIT INCREASES CREDIT PROGRAMS CREDIT RISK CREDIT SCORING DATA ANALYSIS DATA COLLECTION DEBT DEMAND FOR CREDIT DEPOSITS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIMINISHING RETURNS DISBURSEMENT DISECONOMIES OF SCALE DUE DILIGENCE DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELASTICITY EMPLOYMENT EXOGENOUS VARIABLES EXPENDITURE EXPENDITURES EXTERNALITIES EXTERNALITY EXTREME POVERTY FEMALE ENTREPRENEURS FEMALE LABOR FINANCIAL INSTITUTIONS FINANCIAL STUDIES GROUP LENDING GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLD INCOME HUMAN RESOURCES INCOME INCREASING RETURNS INDEBTEDNESS INFORMAL LENDERS INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR ECONOMICS LABOR SUPPLY LABORERS LENDER LOAN LOAN AMOUNTS LOAN PORTFOLIO LOAN RECOVERIES LOCAL ECONOMIES LOCAL ECONOMY LOCAL MARKET LONG-TERM LOANS MARKET CONDITIONS MICRO FINANCE MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MODELING NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY PER CAPITA INCOME POLITICAL ECONOMY POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRODUCTIVITY REGRESSION ANALYSIS RENTS REORGANIZATION RESEARCH WORKING PAPERS RESEARCHERS RETURN SAVINGS SAVINGS ACCOUNT SPECIFICATION ERROR SURVEY DATA TECHNIQUES TEST STATISTICS TRADE SECTOR TRADING WAGES WEALTH WEALTH EFFECT This paper uses long panel survey data spanning over 20 years to examine the dynamics of microcredit programs in Bangladesh. With the phenomenal growth of microfinance institutions representing 30 million members with over $2 billion of annual disbursement over the past two decades, it is important to understand the dynamics of microcredit expansion and its induced impact on household welfare. A dynamic panel model is used to address a number of issues, such as whether credit effects are declining over time, whether market saturation and village diseconomies are taking place, and whether multiple program membership, which is rising as a consequence of microcredit expansion, is harming or benefiting the borrowers. The paper's results confirm that microcredit programs have continued to benefit the poor by raising household welfare. The beneficial effects have also remained higher for female than male borrowers. There are diseconomies of scale caused by higher levels of village-level borrowing, especially for male members. Multiple program membership is also growing with competition from microfinance institutions, but this has rather helped raise assets and net worth more than it has contributed to indebtedness. 2014-05-01T15:37:09Z 2014-05-01T15:37:09Z 2014-03 http://documents.worldbank.org/curated/en/2014/03/19304457/dynamic-effects-microcredit-bangladesh http://hdl.handle.net/10986/18126 English en_US Policy Research Working Paper;No. 6821 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ADVERSE EFFECTS AGRICULTURE AMOUNT OF CREDIT ASSET VALUE ASSETS ATTRITION BANK POLICY BENEFICIAL EFFECTS BIDS BORROWER BORROWING CASH TRANSFER COMMERCIAL BANKS CONSUMER GOODS CREDIT ACCESS CREDIT COEFFICIENTS CREDIT EXPANSION CREDIT GROUP CREDIT INCREASES CREDIT PROGRAMS CREDIT RISK CREDIT SCORING DATA ANALYSIS DATA COLLECTION DEBT DEMAND FOR CREDIT DEPOSITS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIMINISHING RETURNS DISBURSEMENT DISECONOMIES OF SCALE DUE DILIGENCE DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELASTICITY EMPLOYMENT EXOGENOUS VARIABLES EXPENDITURE EXPENDITURES EXTERNALITIES EXTERNALITY EXTREME POVERTY FEMALE ENTREPRENEURS FEMALE LABOR FINANCIAL INSTITUTIONS FINANCIAL STUDIES GROUP LENDING GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLD INCOME HUMAN RESOURCES INCOME INCREASING RETURNS INDEBTEDNESS INFORMAL LENDERS INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR ECONOMICS LABOR SUPPLY LABORERS LENDER LOAN LOAN AMOUNTS LOAN PORTFOLIO LOAN RECOVERIES LOCAL ECONOMIES LOCAL ECONOMY LOCAL MARKET LONG-TERM LOANS MARKET CONDITIONS MICRO FINANCE MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MODELING NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY PER CAPITA INCOME POLITICAL ECONOMY POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRODUCTIVITY REGRESSION ANALYSIS RENTS REORGANIZATION RESEARCH WORKING PAPERS RESEARCHERS RETURN SAVINGS SAVINGS ACCOUNT SPECIFICATION ERROR SURVEY DATA TECHNIQUES TEST STATISTICS TRADE SECTOR TRADING WAGES WEALTH WEALTH EFFECT
spellingShingle	ADVERSE EFFECTS AGRICULTURE AMOUNT OF CREDIT ASSET VALUE ASSETS ATTRITION BANK POLICY BENEFICIAL EFFECTS BIDS BORROWER BORROWING CASH TRANSFER COMMERCIAL BANKS CONSUMER GOODS CREDIT ACCESS CREDIT COEFFICIENTS CREDIT EXPANSION CREDIT GROUP CREDIT INCREASES CREDIT PROGRAMS CREDIT RISK CREDIT SCORING DATA ANALYSIS DATA COLLECTION DEBT DEMAND FOR CREDIT DEPOSITS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIMINISHING RETURNS DISBURSEMENT DISECONOMIES OF SCALE DUE DILIGENCE DUMMY VARIABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ELASTICITY EMPLOYMENT EXOGENOUS VARIABLES EXPENDITURE EXPENDITURES EXTERNALITIES EXTERNALITY EXTREME POVERTY FEMALE ENTREPRENEURS FEMALE LABOR FINANCIAL INSTITUTIONS FINANCIAL STUDIES GROUP LENDING GROWTH RATE HOUSEHOLD ANALYSIS HOUSEHOLD INCOME HUMAN RESOURCES INCOME INCREASING RETURNS INDEBTEDNESS INFORMAL LENDERS INSURANCE INTEREST RATES INTERNATIONAL BANK LABOR ECONOMICS LABOR SUPPLY LABORERS LENDER LOAN LOAN AMOUNTS LOAN PORTFOLIO LOAN RECOVERIES LOCAL ECONOMIES LOCAL ECONOMY LOCAL MARKET LONG-TERM LOANS MARKET CONDITIONS MICRO FINANCE MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MODELING NEGATIVE EXTERNALITIES NEGATIVE EXTERNALITY PER CAPITA INCOME POLITICAL ECONOMY POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRODUCTIVITY REGRESSION ANALYSIS RENTS REORGANIZATION RESEARCH WORKING PAPERS RESEARCHERS RETURN SAVINGS SAVINGS ACCOUNT SPECIFICATION ERROR SURVEY DATA TECHNIQUES TEST STATISTICS TRADE SECTOR TRADING WAGES WEALTH WEALTH EFFECT Khandker, Shahidur R. Samad, Hussain A. Dynamic Effects of Microcredit in Bangladesh
geographic_facet	South Asia Bangladesh
relation	Policy Research Working Paper;No. 6821
description	This paper uses long panel survey data spanning over 20 years to examine the dynamics of microcredit programs in Bangladesh. With the phenomenal growth of microfinance institutions representing 30 million members with over $2 billion of annual disbursement over the past two decades, it is important to understand the dynamics of microcredit expansion and its induced impact on household welfare. A dynamic panel model is used to address a number of issues, such as whether credit effects are declining over time, whether market saturation and village diseconomies are taking place, and whether multiple program membership, which is rising as a consequence of microcredit expansion, is harming or benefiting the borrowers. The paper's results confirm that microcredit programs have continued to benefit the poor by raising household welfare. The beneficial effects have also remained higher for female than male borrowers. There are diseconomies of scale caused by higher levels of village-level borrowing, especially for male members. Multiple program membership is also growing with competition from microfinance institutions, but this has rather helped raise assets and net worth more than it has contributed to indebtedness.
format	Publications & Research :: Policy Research Working Paper
author	Khandker, Shahidur R. Samad, Hussain A.
author_facet	Khandker, Shahidur R. Samad, Hussain A.
author_sort	Khandker, Shahidur R.
title	Dynamic Effects of Microcredit in Bangladesh
title_short	Dynamic Effects of Microcredit in Bangladesh
title_full	Dynamic Effects of Microcredit in Bangladesh
title_fullStr	Dynamic Effects of Microcredit in Bangladesh
title_full_unstemmed	Dynamic Effects of Microcredit in Bangladesh
title_sort	dynamic effects of microcredit in bangladesh
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/03/19304457/dynamic-effects-microcredit-bangladesh http://hdl.handle.net/10986/18126
_version_	1764439401806430208

Dynamic Effects of Microcredit in Bangladesh

Similar Items