Archive

Impact of Microfinance on Health Status of Rural Households: Empirical Evidence from Bangladesh

Mohammad Monzur Morshed Bhuiya

Abstract

Microfinance operations in Bangladesh have existed since late-1970s, but the relationship between microfinance and microfinance participant’s health status has not been extensively investigated. This paper attempts to analyse the impact of microfinance programs upon the health status of member households of microfinance in Bangladesh. Our analytical framework is built upon the household economic portfolio model. With the purpose of measuring the impact of microfinance on health, primary data on 439 households across 20 villages were collected using a quasi-experimental survey approach. Findings of the study suggest that the overall impact of microfinance operations on the health status of the participants is positive. Microfinance participant’s health related issues as indicated by antenatal care, maternal care, diarrhoea, malaria etc. increased significantly after introducing the microfinance.