Does Microfinance Impact on Rural Empowerment in Bangladesh? Differences Between Governmental and Non‐Governmental Microfinance Programs

We investigate the impact of microfinance providers on economic, family and social, and political empowerment. Data were collected in two phases from 300 microfinance beneficiaries and 200 controls. Descriptive statistics, factor analysis, multiple regression, propensity score matching and the Rosenbaum bound method were used for analysis. In the majority of areas, microfinance increased recipients’ empowerment. Both econometric estimations showed the largest effects for family and social and political empowerment in recipients of governmental microfinance, while non‐governmental microfinance recipients saw greater improvements in economic empowerment.