Promotional role of microcredit: Evidence from the Grameen Bank of Bangladesh
Article first published online: 14 JUN 2009
Copyright © 2009 John Wiley & Sons, Ltd.
Journal of International Development
Volume 22, Issue 4, pages 521–529, May 2010
How to Cite
Basher, Md. A. (2010), Promotional role of microcredit: Evidence from the Grameen Bank of Bangladesh. J. Int. Dev., 22: 521–529. doi: 10.1002/jid.1583
- Issue published online: 26 APR 2010
- Article first published online: 14 JUN 2009
- Microcredit; Productivity;
- JEL Classification: O12, O16
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.