What Impact Does Microfinance Have on Rural Livelihood? A Comparison of Governmental and Non-Governmental Microfinance Programs in Bangladesh

This paper analyzes the impact of different microfinance providers on basic rights and quality of life. Data were collected in two phases from 300 microfinance beneficiaries and 200 control respondents. Descriptive statistics, factor analysis, multiple regression, propensity score matching, and treatment effect models were used for analysis. Microfinance appears to increase the basic rights of respondents and help improve quality of life; the positive changes are consistently higher in non-governmental microfinance recipients. These data may help to formulate new policies that help to improve rural livelihood.