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Impact of microfinance on the non-monetary aspects of poverty: evidence from Pakistan

Author

Listed:
  • Muhammad Ali Jibran Qamar

    (COMSATS Institute of Information Technology)

  • Sameen Masood

    (University of the Punjab)

  • Muhammad Nasir

    (COMSATS Institute of Information Technology)

Abstract

To examine the impact of microfinance (MF) on poverty alleviation this research utilized children’s education and housing conditions as the indicators of impact between the established and new clients of MF. Chi square test (χ 2) of significance is used to examine the difference between new and established clients followed by binary logistic regression. It is found that MF plays an important role in poverty reduction (non-financial aspects of poverty) by giving access to better education for their children and improved housing conditions. Established clients (membership with MF for more than 1 year) of MF have better housing conditions and enhanced children’s education than new clients. It contends that with little endeavors, these institutions can perform to eliminate poverty by giving access to various financial and social services. Based on the results, it is recommended, governments, multilateral development agencies should develop policies that perpetuate the MF.

Suggested Citation

  • Muhammad Ali Jibran Qamar & Sameen Masood & Muhammad Nasir, 2017. "Impact of microfinance on the non-monetary aspects of poverty: evidence from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(2), pages 891-902, March.
    • Handle: RePEc:spr:qualqt:v:51:y:2017:i:2:d:10.1007_s11135-016-0317-2
    DOI: 10.1007/s11135-016-0317-2
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    References listed on IDEAS

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    1. J. Copestake & P. Dawson & J.-P. Fanning & A. McKay & K. Wright-Revolledo, 2005. "Monitoring the Diversity of the Poverty Outreach and Impact of Microfinance: A Comparison of Methods Using Data from Peru," Development Policy Review, Overseas Development Institute, vol. 23(6), pages 703-723, November.
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    5. Panjaitan-Drioadisuryo, R.D.M. & Cloud, Kathleen, 1999. "Gender, self-employment and microcredit programs An Indonesian case study," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(5), pages 769-779.
    6. Joseph Kimos Adjei & Thankom Arun & Farhad Hossain, 2009. "The Role of Microfinance in Asset-Building and Poverty Reduction: The Case of Sinapi Aba Trust of Ghana," Global Development Institute Working Paper Series 8709, GDI, The University of Manchester.
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    Cited by:

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    3. Muhammad Abrar ul Haq & Jayendira P. Sankar & Farheen Akram & Muhammad Siddique, 2022. "The role of farmers’ attitude towards their resources to alleviate rural household poverty," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2133-2155, August.

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