The aim of this paper is to analyse the impact of deregulation of rural credit on Bangladeshi farm households by size of holding. Parametric linear programming techniques are used to develop “multi-activity” household models of farms of different sizes. Farmers are assumed to be risk averse. An important model result is that the provision of credit for production, consumption and non-farm activities under a deregulated regime would significantly improve the viability of small-farm households.

A general equilibrium approach is used in this paper to analyse the effects that the Uruguay Round of the GATT may have on economic welfare in Bangladesh. The analysis is carried out in the ‘second-best’ situation wherein some policy distortions within Bangladesh still prevail, and a methodology is innovated to decompose the direct and indirect changes in economic welfare within Bangladesh. It is concluded that the round is welfare-reducing for Bangladesh but that if Bangladesh were to reduce its own protection at the developing country average of 24 per cent, the welfare-reducing consequences of the Round would be approximately negated.