Factors Contributing Toward Poverty Alleviation: Evidence from Grameen Bank

Abstract

This study examines the impact of microfinance on poverty within the framework of the Grameen Bank of Bangladesh. It is specifically interested in identifying the factors that contribute much toward poverty alleviation. A household-level survey was conducted among the members of the Grameen Bank. The members were asked to mention the factors that contribute much toward poverty alleviation. A logistic regression analysis was used to find out the relative importance of those factors. The results show that poverty alleviation is done strongly by the newly attained ability to spend on housing, land purchase and clothing through microfinance participation. The duration of membership also plays an important role in this regard. Although microfinance helps to alleviate poverty by addressing various factors causing poverty, the importance of the factors are different to the members of the Grameen Bank. The identification of the factors according to their importance toward poverty alleviation is expected to help the micro finance providers to attach more value to them.

Keywords: Microfinance; Poverty alleviation; Grameen Bank

Australian Academy of Business and Economics Review, vol 1, issue 2, October 2015, pp 146-163