Impact of microcredit on income inequality among rural women: The case of Panchagarh district in Bangladesh

Ferdoushi Ahmed, Rawshan Ara Begum, Chamhuri Siwar, Md Shahin Mia, Aree Wiboonpongse

Research output: Contribution to journalArticle

Abstract

This article aims to examine the role of microcredit programme on measuring income inequality between two groups of rural women in Bangladesh namely ‘with credit’ and ‘without credit’. ‘With credit’ rural women were members of Grameen Bank’s microcredit programme while ‘without credit’ rural women who were not members of any microcredit programme. This empirical study was based on primary data collected through face to face interview from rural women in Panchagarh District of Bangladesh. By applying Lorenz Curve approach and Gini Coefficient analysis, the study findings revealed that ‘with credit’ households had less income inequality compared to ‘without credit’ households with the values of Gini coefficient at 0.354 and 0.429 respectively. It is evidenced that Grameen Bank’s microcredit programme provides an opportunity to reduce income inequality which ultimately contributes to improve rural family income and their livelihood. Study findings revealed that microcredit programme played a key role to alleviate poverty, reduced income inequality and helped the rural women to be economically independent and financially solvent in their society. The policy implication is that more provision of credits or loans by the microfinance institutions like Grameen Bank for the very poor or ultra-poor women in Bangladesh or any other least developed countries would help to get them involved in income generation activities and come out of poverty. Further research can be conducted on measuring income inequality perception i.e. how rural people perceive their income gaps and what are their thoughts for improving rural income inequality.

Original languageEnglish
Pages (from-to)2367-2382
Number of pages16
JournalPertanika Journal of Social Sciences and Humanities
Volume27
Issue number4
Publication statusPublished - 1 Jan 2019

Fingerprint

Bangladesh
credit
district
income
bank
poverty
microfinance
Income inequality
Microcredit
Rural women
Credit
Income
family income
loan
livelihood
interview
Grameen Bank
Values
Group

Keywords

  • Bangladesh
  • Grameen Bank
  • Income inequality
  • Microcredit
  • Rural women

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Arts and Humanities(all)
  • Social Sciences(all)
  • Economics, Econometrics and Finance(all)

Cite this

Impact of microcredit on income inequality among rural women : The case of Panchagarh district in Bangladesh. / Ahmed, Ferdoushi; Begum, Rawshan Ara; Siwar, Chamhuri; Mia, Md Shahin; Wiboonpongse, Aree.

In: Pertanika Journal of Social Sciences and Humanities, Vol. 27, No. 4, 01.01.2019, p. 2367-2382.

Research output: Contribution to journalArticle

Ahmed, Ferdoushi ; Begum, Rawshan Ara ; Siwar, Chamhuri ; Mia, Md Shahin ; Wiboonpongse, Aree. / Impact of microcredit on income inequality among rural women : The case of Panchagarh district in Bangladesh. In: Pertanika Journal of Social Sciences and Humanities. 2019 ; Vol. 27, No. 4. pp. 2367-2382.
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