Impact of Micro Finance Activities on the Economic Development of Bangladesh
International Journal of Finance and Banking Research
Volume 2, Issue 1, February 2016, Pages: 1-6
Received: Jan. 20, 2016;
Accepted: Jan. 21, 2016;
Published: Feb. 4, 2016
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Md Sazzadur Rahman Khan, Department of Business Administration, Stamford University Bangladesh, Dhaka, Bangladesh
Rezaul Karim, Department of Business Administration, Atish Dipankar University of Science and Technology, Dhaka, Bangladesh
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The study was conducted to find out how microfinance plays the pivotal role and what significant impact on the development of Bangladesh. To observe that we tried to find out in which way it is playing its role and what type of key economic development indicators are related with it. Microfinance is providing a significant role in the development of Bangladesh by providing financial assistance to the lower income but self-employed people. Once most of these people were remained unemployed but by getting the financial support from the different institutions especially from Grameen Bank and other similar NGOs like BRAC they have turned into employed. The poverty level has minimized a lot from the rural area and household income increase by around one-third. Wages and marginal propensity to consumption increased especially for women and it creates positive impact on children's schooling: A 1.05% increase in Grameen Bank female borrowers increases the probability of school enrollment by 1.8% for girls and 1.99% for boys. Microfinance also contributed to smoothening consumption level and reducing vulnerability of life of people.
GDP, lDFID, MFI, Micro Finance, Economic Development
To cite this article
Md Sazzadur Rahman Khan,
Impact of Micro Finance Activities on the Economic Development of Bangladesh, International Journal of Finance and Banking Research.
Vol. 2, No. 1,
2016, pp. 1-6.
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
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