Impact of Village Phone Credit on the Livelihood Improvement of the Borrowing Households

The study was undertaken to investigate the impact of Village Phone (VP) credit on the livelihood of the loanee households. Data were collected from 100 VP operators randomly by using interview schedule from the three selected unions of Sadar upazila under Mymensingh district. It was found that VP has brought positive changes in different types of livelihood capital, food intake and so on. The study reveals that positive changes in income and saving took place due to VP operation. Notable changes were also been taken place in case of physical, human and social capital. Average annual income earned from the VP constituted 31.42% of the total household income. The study reveals that 63% of VP operators indicated that their socio-economic condition got improved due to VP income. Logit regression was estimated to determine the effect of different socio-economic variables on the likelihood of welfare improvement; and it provided additional support that VP operation and income earned there from were actually instrumental for the overall welfare improvement of the borrowing household.