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Microfinance and Household Poverty Reduction: Empirical Evidence from Rural Pakistan

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  • Asad K. Ghalib
  • Issam Malki
  • Katsushi S. Imai

Abstract

This study examines whether household access to microfinance reduces poverty in Pakistan and, if so, how and to what extent. It draws on primary empirical data gathered by interviewing 1132 households, including both borrower and non-borrower households, in 2008-2009. Sample selection biases have been partially controlled for by using propensity score matching. The study reveals that microfinance programmes had a positive impact on the participating households. Poverty-reducing effects were observed on a number of indicators, including expenditure on healthcare, clothing and household income, and on certain dwelling characteristics, such as water supply and the quality of roofing and walls.

Suggested Citation

  • Asad K. Ghalib & Issam Malki & Katsushi S. Imai, 2015. "Microfinance and Household Poverty Reduction: Empirical Evidence from Rural Pakistan," Oxford Development Studies, Taylor & Francis Journals, vol. 43(1), pages 84-104, March.
    • Handle: RePEc:taf:oxdevs:v:43:y:2015:i:1:p:84-104
    DOI: 10.1080/13600818.2014.980228
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    References listed on IDEAS

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    Cited by:

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    2. Mora-Rivera, Jorge & Cerón-Monroy, Hazael & García-Mora, Fernando, 2019. "The impact of remittances on domestic tourism in Mexico," Annals of Tourism Research, Elsevier, vol. 76(C), pages 36-52.
    3. Collin Chikwira & Edson Vengesai & Petronella Mandude, 2022. "The Impact of Microfinance Institutions on Poverty Alleviation," JRFM, MDPI, vol. 15(9), pages 1-13, September.
    4. Stylianou Tasos & Muhammad Ijaz Amjad & Masood Sarwar Awan & Muhammad Waqas, 2020. "Poverty Alleviation and Microfinance for the Economy of Pakistan: A Case Study of Khushhali Bank in Sargodha," Economies, MDPI, vol. 8(3), pages 1-18, August.
    5. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series 190, World Institute for Development Economic Research (UNU-WIDER).
    6. Ma, Wanglin & Qiu, Huanguang & Fan, Yubing & Zhou, Xiaoshi, 2020. "The joint effects of ICT adoption and access to credit on household income in China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304431, Agricultural and Applied Economics Association.
    7. Asma Boussetta, 2022. "Microfinance, Poverty and Education," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(1), pages 86-108, March.
    8. Md. Masud Parvej & Md. Asad Iqbal Chowdhury & Md. Kazi Golam Azam & Md. Musharof Hossain & Abdullah Mohammad Ahshanul Mamun, 2020. "Role of Islamic Microfinance in Alleviating Poverty in Bangladesh: A Study on RDS of IBBL," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 111-129, July.
    9. N. Ngoc B. & Н. Нгок Б., 2016. "Влияние Структуры Капитала И Юридического Статуса На Финансовую Устойчивость Микрофинансовых Институтов В Развивающихся Странах // The Effect Of Capital Structure And Legal Status On Financial Sustain," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 4(2), pages 53-64.
    10. Xiaohua Wang & Meilan Chen & Xi He & Fangfang Zhang, 2018. "Credit Constraint, Credit Adjustment, and Sustainable Growth of Farmers’ Income," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    11. Farhana Ferdousi & Parveen Mahmud & Kazi Tanvir Mahmud, 2022. "Fostering Youth Entrepreneurship Development through Social Business—Evidence from Bangladesh," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    12. Waqas Umar Latif & Sana Ullah & Wasim Ahmed & Muhammad Umar Sultan & Rana Muhammad Sohail Jafar & Muhammad Tariq & Wang Linping, 2020. "Microcredit and Economic Welfare: Experience of Poor Rural Households from Pakistan," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(6), pages 976-997, August.
    13. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series wp-2017-190, World Institute for Development Economic Research (UNU-WIDER).
    14. Kifayat Ullah & Abdul Qayyum Mohsin & Abdul Saboor & Saranjam Baig, 2020. "Financial Inclusion, Socioeconomic Disaster Risks and Sustainable Mountain Development: Empirical Evidence from the Karakoram Valleys of Pakistan," Sustainability, MDPI, vol. 12(22), pages 1-26, November.

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