Access to Credits and Erosive or Non-erosive Coping Strategies: An Empirical Analysis in Bangladesh

Authors

  • Meherun AHMED Asian University for Women
  • Iftekhar Uddin Ahmed CHOWDHURY Asian University for Women
  • Sabiha Subah MOHONA The World Bank

Keywords:

Access to Credits, Coping Strategies, Erosive Coping, Income Shock, Microfinance, Natural Disaster

Abstract

This paper uses household-level data from a nationally representative survey conducted in 2009 and 2010 in Bangladesh to determine the relationship between coping mechanisms and having access to credits. The analysis finds that more than half of the sample claimed to have faced shocks over the years. The paper also discusses the coping strategies households undertake after experiencing economic shocks. As Bangladesh is prone to natural disasters, some climatic shocks are annual in certain parts of the country. A lot of factors influence the coping strategies taken by the households. Poorer households are more likely to use coping mechanisms that may have negative implications in the long run as they include the depletion of capitals, assets, savings etc. An econometric model is used to address what might help them to cope better and whether having access to any kind of credit can help them cope, i.e., help them to take non-erosive measures when they face shocks. Policy implications include the importance of developing government programs, safety net programs and developing the networks of microfinance organizations.

Published

31-05-2017

How to Cite

AHMED, M., CHOWDHURY, I. U. A., & MOHONA, S. S. (2017). Access to Credits and Erosive or Non-erosive Coping Strategies: An Empirical Analysis in Bangladesh. Eurasian Journal of Business and Economics, 10(19), 1-18. Retrieved from https://ejbe.org/index.php/EJBE/article/view/176

Issue

Section

Articles