Medium‐ and Long‐Term Participation in Microcredit: An Evaluation Using a New Panel Dataset from Bangladesh

20 Pages Posted: 8 Apr 2020

See all articles by Asad Islam

Asad Islam

Monash University - Department of Economics

Date Written: April 2011

Abstract

The objective of this paper is to estimate the impact of medium‐ and long‐term participation in microcredit programs. It utilizes a new, and large, panel dataset collected from treatment and control households from 1997 to 2005. The data enables us to identify continuing participants in the program as well as newcomers and leavers. We employ different estimation strategies including difference‐in‐difference‐in‐difference and propensity score matching methods to control for selection bias. The impact estimates indicate that the benefits from microcredit vary more than proportionately with the duration of participation in a program. Larger benefits are realized from longer‐term participation, and the benefits continue to accrue beyond departure from the program. The findings indicate the need to observe longer periods of participation to provide a reliable basis for assessing the effectiveness of microcredit lending.

Keywords: microcredit, Bangladesh, difference-in-difference-in-difference, propensity score matching, medium-term

Suggested Citation

Islam, Asadul, Medium‐ and Long‐Term Participation in Microcredit: An Evaluation Using a New Panel Dataset from Bangladesh (April 2011). American Journal of Agricultural Economics, Vol. 93, Issue 3, pp. 847-866, 2011, Available at SSRN: https://ssrn.com/abstract=3570834 or http://dx.doi.org/10.1093/ajae/aar012

Asadul Islam (Contact Author)

Monash University - Department of Economics ( email )

Department of Economics
Monash University
Caulfield East, Victoria
Australia
+61399032783 (Phone)

HOME PAGE: http://users.monash.edu/~asaduli/

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