The impact of Microcredit on Women’s Empowerment. - A case study of Microcredit in the Tangail district, Bangladesh.

Abstract: The impact of microcredit on women’s empowerment remains debated. While some studies suggest that microcredit helps women increase their income earning abilities, leading to greater power within the household, others argue that men often take control over the microcredit allocated to women, which leads to a more vulnerable position within the household for women. This paper evaluates the impact of microcredit on women’s empowerment in rural Bangladesh. The data was collected via a questionnaire in a field study in the district of Tangail in Bangladesh. Furthermore, the impact of microcredit on women’s empowerment is examined through a cross-sectional impact methodology, referred to as the control-group method. Microcredit borrowers are compared to soon-to-be microcredit borrowers, and the difference between these groups is ascribed to microcredit. An econometric analysis is then employed on the data gathered via the questionnaire. The results confirm that microcredit has a significant positive impact on women’s empowerment.