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Role of SME in Poverty Alleviation in SAARC Region via Panel Data Analysis

Author

Listed:
  • Faiza Manzoor

    (Department of Agricultural Economics and Management, School of Management, Zhejiang University, Hangzhou 310029, China)

  • Longbao Wei

    (Department of Agricultural Economics and Management, School of Management, Zhejiang University, Hangzhou 310029, China)

  • Mohammad Nurunnabi

    (St Antony’s College, University of Oxford, Oxford OX2 6JF, UK
    Department of Accounting, Prince Sultan University, Riyadh 11586, Saudi Arabia)

  • Qazi Abdul Subhan

    (Bahria Business School, Bahria University, Islamabad, P.O. 44000, Pakistan)

Abstract

The key objective of the formation of the South Asian Association of Regional Cooperation (SAARC) is to join hands collectively for slow economic growth, poverty eradication, deprived health and education sectors. In the 12th SAARC Summit, it has been declared that poverty eradication is the main area of concentration and SAARC countries would strive their best to minimize all types of poverty with the help of any possible strategy. The main objectives of the current study are to evaluate the development of the agenda of poverty eradication in SAARC countries through small and medium enterprise (SME) development because it would be considered as a short-routed remedy to mitigate poverty. The poorest 20% income holder as a percentage of GDP has been used as the proxy for poverty in the SAARC region. SME development has been measured through the SME share in GDP in respective countries. The panel dataset has been developed for the period of 1990 to 2015. The fixed effect method (FEM) and regression equation techniques were used to analyse the observed data. The results of the FEM were misleading. The regression equations for the respective countries were used for empirical analysis. The results have identified that there are three main factors that are essential in reducing poverty in the SAARC region: SME growth, openness of trade and social sector development.

Suggested Citation

  • Faiza Manzoor & Longbao Wei & Mohammad Nurunnabi & Qazi Abdul Subhan, 2019. "Role of SME in Poverty Alleviation in SAARC Region via Panel Data Analysis," Sustainability, MDPI, vol. 11(22), pages 1-14, November.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:22:p:6480-:d:288057
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    References listed on IDEAS

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    2. Frederik Claeyé & Yosra Boughattas & Erno T. Tornikoski, 2022. "Formation of Social Entrepreneurial Intention: A Qualitative Grounded Approach at the Base of the Pyramid," Administrative Sciences, MDPI, vol. 12(1), pages 1-16, February.
    3. K. K. Abdulkareem*, Hauwah, 2023. "Financial Inclusion And Poverty Reduction Among The Operators In The Small And Medium Scale Enterprises Of Lagos State," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 10(1), pages 15-31, June.
    4. Hernita Hernita & Batara Surya & Iwan Perwira & Herminawaty Abubakar & Muhammad Idris, 2021. "Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia," Sustainability, MDPI, vol. 13(6), pages 1-36, March.
    5. Yujie Huang & Xianke Huang & Ruiliang Li & Wei Cheng, 2023. "Assessing the effectiveness of targeted poverty alleviation policies in Xinjiang, China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    6. Ziyane, Barbara & Arogundade, Sodiq & Osei-Assibey, Kwame, 2023. "Entrepreneurship Development, Innovation and Township Economy in South Africa," MPRA Paper 117657, University Library of Munich, Germany.
    7. Collin Chikwira & Edson Vengesai & Petronella Mandude, 2022. "The Impact of Microfinance Institutions on Poverty Alleviation," JRFM, MDPI, vol. 15(9), pages 1-13, September.
    8. Darrold Cordes & Shahram Latifi & Gregory M. Morrison, 2022. "Systematic literature review of the performance characteristics of Chebyshev polynomials in machine learning applications for economic forecasting in low-income communities in sub-Saharan Africa," SN Business & Economics, Springer, vol. 2(12), pages 1-33, December.

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