IMPACT OF MICROCREDIT ON MULTIDIMENSIONAL POVERTY AND FOOD SECURITY OF SMALL FARMERS IN BANGLADESH
This paper contributes to the debate of microcredits by investigate the impact of a group-based microcredit program on multidimensional poverty and food security of small farmers in Bangladesh. Using data from 127 farmers, Mixed-methods were applied to obtain indicators of poverty and food security and assess the effects of receiving microcredits. The indicator based poverty assessment of the Multidimensional Poverty Index (MPI), was employed to measure multidimensional poverty, household Food Insecurity Access Scale (HFIAS) was appointed to assess food insecurity and principal factor analysis was applied to obtain a combined indicator for multidimensional poverty and food security. The results of this study indicated that farmers who receive microcredit are better off both in terms of multidimensional poverty and food security than farmers not receiving. The PSM also provided the evidence for a positive impact, but not enough to justify the strongly positive conclusion.