Impact of Microcredit on Second Generation Borrowers in Bangladesh: Revisited

Abstract

This article investigates the economic impact of continuing borrowers’ participation in the microcredit programme on poverty eradication in Bangladesh. A panel data set was collected through a field survey for the years 2013–2016 to identify the impact of a microcredit programme on continuous participation borrowers. The propensity score matching (PSM) method is used to eliminate selection bias and the difference-in-difference (DID) model is applied for the empirical analysis. The findings of the study demonstrate that more benefits are realized from continued participants compared to discontinued participants.

JEL: C83, D14, G21, O12

Keywords

Continuous participation microcredit poverty Bangladesh propensity score matching (PSM)difference-in-difference (DID)

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