Asian Development Bank Institute (ADBI) will hold a seminar titled ‘Shocks and Brave Farmers: Evidence from a Randomized Agricultural Microfinance Experiment in Bangladesh’ on September 19 in Tokyo.
The main objective of the seminar is to discuss the topic among policy makers, researchers, academics, think tanks, and the public, leading to policy options for inclusive and sustainable development, said a disclosure posted on ADBI website.
Mohammad Abdul Malek, a senior research fellow at BRAC, also a JSPS postdoctoral fellow at the Faculty of Economics, University of Tokyo will examine the role of credit in farmers’ risk-coping strategies in the presence of shocks, particularly a programme designed and implemented by BRAC. The programme uses a simple two-period model of technology adoption to show consumption credit as an insurance mechanism. He will also discuss the standard balancing tests showing that the treatments and shocks are both exogenously given and, thus, regression results can be interpreted as causal relationships. Shocks considerably increase credit uptake among the treatment groups and have a significant impact on outcome indicators (purpose of credit use, land use, technology adoption, shifting day labouring to self-employment, farmers’ income, consumption independence and subjective well-being).