The effects of microfinance on women's empowerment: New evidence from Bangladesh

Previous literature has produced inconclusive evidence on the link between microcredit and women’s empowerment. This study, therefore, has re-visited the issue by conducting a household survey in the 4 districts of Bangladesh to examine whether microcredit is really empowering. In doing so, we have done a thorough review of the previous literature. Our results from the logistic regression indicate that microfinance has actually increased women’s empowerment in Bangladesh. We have found positive impact of most of the selected indicators on women’s empowerment. However, for achieving full benefit of microfinance in empowering women it must be supplemented by a significant amount of skills training and educational opportunities for these poor women and intensive awareness campaigns with an integrated approach