Abstract:
The main objective of this study was to assess the impact of microcredit on the food
security status of rural households in Bangladesh. Primary data was collected from
Comilla and Chandpur districts of Bangladesh due to availability of microcredit
borrowers. Data were collected purposively from 200 respondents through face-to-face
interviews during January to June, 2022. Descriptive and econometric models were
used to analyzed the data. Probit regression model, Food Consumption Score (FCS)
and Propensity Score Matching (PSM) technique were used to obtain the objectives of
the study. Probit regression model was used to assess the factors influencing access to
microcredit. FCS method was used to assess the food security status of microcredit
borrowers and non-borrowers and PSM was used to evaluate the impact of microcredit
in enhancing food security of rural households. The findings indicated that gender, age,
agricultural land, family, household size, non-farm income source of household and
training influence access to microcredit positively, in opposite education, occupation,
earning member and annual income influenced access to microcredit negatively
whereas gender, age, land, family, household size, non-farm income, annual income
and training were significant at 5% level of significance and education, occupation,
earning member, training were significant at 1% level of significance. The results also
revealed that there is a significant difference of FCS with 1% level of significance
between microcredit borrowers and non-borrowers and FCS is higher for nonborrowers
compared
to
borrowers.
The
PSM
result
revealed
that
microcredit
program
has
reduced
the
food
security
status
of
the
borrowers
by
17.564
and
6.04
unit
based
on
Nearest
Neighbor (NN) and Radius matching method. Inadequate credit availability
and inefficient credit utilization could be the cause. The study suggests that microcredit
program should be design to promote sustainable livelihood of rural households and
regular monitoring and evaluation are essential to assess the impact on food security.
In addition, it is recommended that microcredit intervention with social support
programs can have a holistic impact on improving food security and well-being of rural
households.
Description:
A Thesis
Submitted to the Department of Management and Finance,
Sher-e-Bangla Agricultural University, Dhaka, in
partial fulfillment of the requirements
for the degree of
MASTER OF SCIENCE
IN
MANAGEMENT AND FINANCE
