Role of Microfinance in Poverty Alleviation in the Least Developed Area of Pakistan

Ullah, Atta; Pinglu, Chen; Ullah, Saif; Aslam, Nighat; Zaman, Mubasher

doi:10.18488/journal.aefr.2020.1012.1430.1452

Cited by 8 publications

(7 citation statements)

References 7 publications

(7 reference statements)

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“…Furthermore, the higher the level of education and public health, the higher the productivity level, which in turn will make them better able to create suitable independent productive work opportunities, and can generate money to reduce poverty. This research supports Ullah et al (2020) that there is a positive and significant relationship between microfinance institutions (MFIs) and poverty, and recommended that MFIs should offer training sessions before giving credit because they need entrepreneurial skills, business knowledge, and mentorship. Furthermore, Rasyid et al (2020) found that poor households allocate less of their income to basic health needs such as buying side dishes, vegetables, fruit, and meat.…”

Section: Empirical Results and Discussionsupporting

confidence: 67%

A Simple Mitigation Model of Poverty Reduction in Indonesia

Prasetyo¹,

Thomas²

2021

OJBM

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Section: Empirical Results and Discussionsupporting

confidence: 67%

A Simple Mitigation Model of Poverty Reduction in Indonesia

Prasetyo¹,

Thomas²

2021

OJBM

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“…Moreover, in some cases, due to lack of collateral, they are unable to get access to the microcredit facilities provided by the formal sector because they are being considered as "dangerous borrowers" (Khan et al, 2017, p. 637). However, plenty of literature also reflects that microcredit played a pivotal role in poverty reduction and the socio-economic well-being of low-income consumers (Bashir et al, 2010;Ullah et al, 2020). Keeping in view the above-mentioned arguments, the present study is an attempt to further explore the skilled rural women's experiences of microcredit utilization in district Sheikhupura, Pakistan.…”

Section: Introductionmentioning

confidence: 95%

Experiences of Microcredit Beneficiaries: A Study of Rural Women in District Sheikhupura, Pakistan

Shah

Butt

2021

pjsr

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Based on the constructivist epistemological point and qualitative research design, the present study attempts to explore the experiences of rural women about microcredit programs. The population of this study comprised of women beneficiaries of microcredit dwelling from District Sheikhupura, Pakistan. The purposive sampling technique has been used to select respondents for in-depth interviews. The researchers have started fieldwork with some broader questions in their minds as informed by the grounded theory approach (Charmaz, 2006; Jerolmack, 2007; Strauss & Corbin, 1990). These in-depth interviews and field observations enabled the researchers to draw some new themes and inferences. The researchers have included all these themes and inferences in their interview guide for further interviews. A total of 21 in-depth interviews have been conducted which include the 7 interviews at the initial stage of data collection. It was observed that microcredit has some positive as well as some negative consequences on the lives of the recipient. It was positively linked with women’s economic empowerment, improvement in their well-being, decrease in intimate partner violence, positive influence on the member’s own and their children’s health, education, and nutrition patterns. However, some of the respondents said that microcredit did nothing with their empowerment rather it indulge them in extreme poverty and increased male dominance at the household level. Keywords: Microcredit, Women Empowerment, Intimate Partner Violence, Patriarchy, Extreme Poverty, Money Lenders

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“…Household vulnerability to poverty with bank credit is 0.4 percent less than that of households without bank credit. Ullah et al (2020) examined the effect of microfinance on poverty alleviation in Pakistan using regression and crosstab analyses. The findings showed a significantly positive effect of microfinance on poverty alleviation.…”

Section: Grameen Bank Theorymentioning

confidence: 99%

“…Ullah et al. (2020) examined the effect of microfinance on poverty alleviation in Pakistan using regression and crosstab analyses. The findings showed a significantly positive effect of microfinance on poverty alleviation.…”

Section: Literature Reviewmentioning

confidence: 99%

Do Cooperative credit unions reduce or increase poverty in Cameroon?

Ngong,

Abner,

Ugbam

et al. 2023

Social Science Quarterly

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PurposeThis study looks at whether credit unions, a type of microfinance, increase or decrease poverty in Cameroon from 2004 Q1 to 2021 Q4.Method/designThe fully modified ordinary least square, dynamic ordinary least square, and conical co‐integration is applied.FindingsThe findings reveal a long‐term association between credit union measures and poverty levels. The results indicate that the number of credit unions, the number of commercial bank branches, and credit to the private sector negatively relate to poverty levels. This implies that as the number of credit unions increases, the poverty level increases as the credit unions tend to exploit the poor population. Outstanding deposits positively impact poverty levels, which imply that members’ deposits alleviate poverty.Research implicationsThe government should refurbish the existing programs to enhance credit unions' activities to focus more on banking the poor population especially in remote areas. The credit unions should increase deposit mobilization from the public to empower individuals and businesses. The government should regulate the number of credit unions being created to limit exploitation. The government should intervene to ensure that credit unions’ policy regarding lending, interest rates, and loan recovery procedures are mutually agreed upon by the parties.Originality/noveltyLimited studies used secondary data focusing on credit unions. The studies give conflicting results: Some studies reveal that microfinance banks positively affect poverty reduction. Some indicate negative effects of microfinance on poverty reduction. Others show that microfinance institutions do not significantly influence poverty reduction. Different opinions exist among depositors and borrowers of credit unions concerning poverty alleviation. Some credit union members hold that credit unions increase poverty, while others argue that credit unions alleviate poverty.

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Role of Microfinance in Poverty Alleviation in the Least Developed Area of Pakistan

Cited by 8 publications

References 7 publications

A Simple Mitigation Model of Poverty Reduction in Indonesia

A Simple Mitigation Model of Poverty Reduction in Indonesia

Experiences of Microcredit Beneficiaries: A Study of Rural Women in District Sheikhupura, Pakistan

Do Cooperative credit unions reduce or increase poverty in Cameroon?

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