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The role of small and medium enterprises and poverty in Pakistan: An empirical analysis

Author

Listed:
  • Sharafat ALI

    (Government Post Graduate College Kot Sultan, Layyah, Pakistan)

  • Humayun RASHID

    (Allama Iqbal Open University, Islamabad, Pakistan)

  • Muhammad Aamir KHAN

    (PMAS Arid Agriculture University, Rawalpindi, Pakistan)

Abstract

The role of Small and Medium Enterprises (SMEs) is very important in economic growth, employment generation and poverty alleviation. Annual time series data has been used to examine the impact of SMEs on poverty in Pakistan for the period between 1972 and 2007. Log-linear autoregressive model has been estimated by Ordinary Least Squares (OLS) method using one year previous value of HCR as explanatory variable. The results of the study confirm a strong and negative impact of small scale industries’ output on poverty levels in Pakistan. The economic policy makers must focus on the establishment of formal financial markets to overcome the financial constraints faced by the SME sector in Pakistan. Simplification of lending procedures, enforcement of credit rights, and reduction in credit costs would be helpful for the establishment of robust SME sector in Pakistan.

Suggested Citation

  • Sharafat ALI & Humayun RASHID & Muhammad Aamir KHAN, 2014. "The role of small and medium enterprises and poverty in Pakistan: An empirical analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(593)), pages 67-80, April.
    • Handle: RePEc:agr:journl:v:xxi:y:2014:i:4(593):p:67-80
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    References listed on IDEAS

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    1. J. Behrman & T.N. Srinivasan (ed.), 1995. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 3, number 4.
    2. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657, Elsevier.
    3. J. Behrman & T.N. Srinivasan (ed.), 1995. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 3, number 3.
    4. Durbin, J, 1970. "Testing for Serial Correlation in Least-Squares Regression When Some of the Regressors are Lagged Dependent Variables," Econometrica, Econometric Society, vol. 38(3), pages 410-421, May.
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    Cited by:

    1. You, Kefei & Bianco, Silvia Dal & Amankwah-Amoah, Joseph, 2020. "Closing Technological Gaps to Alleviate Poverty: Evidence from 17 Sub-Saharan African Countries," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    2. AKM Asaduzzaman Patwary ∗, 2020. "Private Sector SMEs in Realizing SDG 1- "No Poverty" in the Context of Bangladesh," International Journal of Humanities, Arts and Social Sciences, Dr. Mohammad Hamad Al-khresheh, vol. 6(6), pages 274-288.
    3. Marus Eton & Fabian Mwosi & Constant Okello-Obura & Abanis Turyehebwa & Gilbert Uwonda, 2021. "Financial inclusion and the growth of small medium enterprises in Uganda: empirical evidence from selected districts in Lango sub-region," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-23, December.
    4. repec:arp:sjavsm:2021:p:103-107 is not listed on IDEAS
    5. Shagea Ghaleb & Ekrem Gül, 2022. "Impact of Small and Medium-Sized Enterprises (SMEs) on the Sustainable Development in Yemen during the Period from 2000 to 2018: An Empirical Study," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 72(72-1), pages 55-80, June.

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