A study of the consumption expenditure behaviour of the members who participate in the microfinance programme

Abstract

We utilize a large panel dataset of rural Bangladeshi families “to assess the impact of microcredit participation on food security. As part of our research, we evaluate how microcredit impacts many metrics of food security; for example, household calorie intake, food variety indicators, and the physical health of mothers and children under five. Involvement in microcredit programs increases caloric intake both at the intense and extensive margins, but does not promote dietary variety and mainly has mixed impacts on anthropometric measurements. We find that participation in microcredit programs. The impact of involvement on food security may also be non-linear, in which participation initially has little effect on food security or may even harm it, before eventually improving it. For example, our findings may explain why short-term evaluations of microcredit may indicate no beneficial benefits. This article uses an analytical framework that recognizes the conceptual shift in emphasis in the definition of empowerment, from notions of greater well-being of women to notions of women's choice and active agency in achieving greater well-being, to reassess the effect of microcredit program participation on women's empowerment.