Micro-Finance and Poverty: Evidence Using Panel Data from Bangladesh

  title={Micro-Finance and Poverty: Evidence Using Panel Data from Bangladesh},
  author={S. Khandker},
Micro-finance supports mainly informal activities that often have low market demand. It may be thus hypothesized that the aggregate poverty impact of micro-finance in an economy with low economic growth is modest or nonexistent. The observed borrower-level poverty impact is then a result of income redistribution or short-run income generation. The author addresses these questions using household level panel data from Bangladesh. The findings confirm that micro-finance benefits the poorest and… Expand
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