IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v16y2024i8p31.html

The Impact of Islamic Microcredit on Economic Development of Women in Somalia

Author

Listed:
  • Mohamud Dahir Hilif
  • Dayah Abdi Kulmie
  • Burhan Mohamed Osman

Abstract

Islamic financial institutions are obliged to adhere to Shari’ah principles, which promote ethical financial transactions. These institutions prioritize not only their business concerns but also strive towards broader socio-economic development objectives. Microcredit services play a crucial role in facilitating the achievement of these goals and aligning with the overarching Shari’ah objectives. The purpose of this research is to scrutinize the impact of Islamic microcredit on the economic advancement of women in Somalia. To explore the correlation between microcredit provision and women’s economic progression, a correlational research design was selected as an appropriate approach. Primary data collected from 135 respondents were then subject to analysis using SPSS software. Substantive evidence emerged suggesting a substantial positive association between microcredit services and women’s economic development. Consequently, our findings demonstrate that both microcredit provision and overall economic progress exhibit statistically significant positive effects on the economic advancement experienced by women within Somalia. The research findings suggest that a higher degree of adoption of microcredit services has the potential to enhance women’s financial status, self-assurance, and improve their chances for uplifting themselves from poverty. Consequently, these outcomes can contribute to the overall progress and well-being of society as a whole.

Suggested Citation

  • Mohamud Dahir Hilif & Dayah Abdi Kulmie & Burhan Mohamed Osman, 2024. "The Impact of Islamic Microcredit on Economic Development of Women in Somalia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 16(8), pages 1-31, August.
    • Handle: RePEc:ibn:ijefaa:v:16:y:2024:i:8:p:31
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/50425/54608
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/50425
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ackon, Kwabena Meneabe, 2020. "The Systems Theory Of Economic Development; As Formulated By Kwabena Meneabe Ackon on 12th November 2020; Discussed In The Context Of Human Capital and, Economic, Social And Political Institutions In Africa," MPRA Paper 104205, University Library of Munich, Germany.
    2. Sarah Wali Qazi, M. Zaki Rashidi, 2018. "Nurturing Women Empowerment? A Phenomenological Study of the Linkages between Women, Micro Entrepreneurship and Access to Microcredit," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 5(2), pages 3-21, October.
    3. Fletschner, Diana, 2009. "Rural Women's Access to Credit: Market Imperfections and Intrahousehold Dynamics," World Development, Elsevier, vol. 37(3), pages 618-631, March.
    4. Mahabub Hossain & Binayak Sen, 1992. "Rural Poverty in Bangladesh: Trends and Determinants," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 1-34.
    5. Supriya Garikipati, 2013. "Microcredit and Women's Empowerment: Have We Been Looking at the Wrong Indicators?," Oxford Development Studies, Taylor & Francis Journals, vol. 41(sup1), pages 53-75, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koen Rossel-Cambier, 2010. "Do Multiple Financial Services Enhance the Poverty Outreach of Microfinance Institutions?," Working Papers CEB 10-058, ULB -- Universite Libre de Bruxelles.
    2. Khuong Ninh Le & Van Hon Cao, 2023. "Geographical Distance and Access to Bank Credit of Vietnamese Farmers," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 48(1), pages 111-128.
    3. Malapit, Hazel Jean L., 2012. "Why do spouses hide income?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 584-593.
    4. Joseph I. Uduji & Elda N. Okolo-Obasi, 2023. "Analysis of Rural Women’s Access to Financial Services and Corporate Social Responsibility in Nigeria’s Niger Delta Region," Working Papers 23/080, European Xtramile Centre of African Studies (EXCAS).
    5. Seema Ghosh & Mousumi Singha Mahapatra & Neelam Tandon & Deepak Tandon, 2024. "Achieving Sustainable Development Goal of Women Empowerment: A Study among Self-help Groups in India," FIIB Business Review, , vol. 13(4), pages 477-491, August.
    6. Landmann, D. & Feil, J.-H. & Lagerkvist, C.J. & Otter, V., 2018. "Designing capacity development activities of small-scale farmers in developing countries based on discrete choice experiments," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277738, International Association of Agricultural Economists.
    7. Hartarska, Valentina & Nadolnyak, Denis & Mersland, Roy, 2014. "Are Women Better Bankers to the Poor? Evidence from Rural Microfinance Institutions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 96(5), pages 1291-1306.
    8. Nassani, Abdelmohsen A. & Aldakhil, Abdullah Mohammed & Abro, Muhammad Moinuddin Qazi & Islam, Talat & Zaman, Khalid, 2019. "The impact of tourism and finance on women empowerment," Journal of Policy Modeling, Elsevier, vol. 41(2), pages 234-254.
    9. Martey, Edward & Etwire, Prince M. & Adusah-Poku, Frank & Krah, Kwabena & Suraj, Mustapha M., 2026. "Community water resource and energy poverty in Ghana," Energy Policy, Elsevier, vol. 209(PA).
    10. Fletschner, Diana & Mesbah, Dina, 2011. "Gender Disparity in Access to Information: Do Spouses Share What They Know?," World Development, Elsevier, vol. 39(8), pages 1422-1433, August.
    11. Hossain, Mahabub & Naher, Firdousi & Shahabuddin, Quazi, 2005. "Food Security and Nutrition in Bangladesh: Progress and Determinants," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations (FAO), Agricultural and Development Economics Division (ESA), vol. 2(2), pages 1-30.
    12. Distefano, Rosaria, 2022. "The social cost of playing by the rules in the credit market," MPRA Paper 115326, University Library of Munich, Germany.
    13. Agier, Isabelle & Szafarz, Ariane, 2013. "Microfinance and Gender: Is There a Glass Ceiling on Loan Size?," World Development, Elsevier, vol. 42(C), pages 165-181.
    14. Patrick Behr & Jorge Jacob, 2024. "Neighbourhood social capital, account usage and savings behaviour in low‐income countries: Field experimental evidence from Senegal," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(1), pages 84-108, January.
    15. Anastasia Cozarenco & Ariane Szafarz, 2013. "Women’s Access to Credit in France: How Microfinance Institutions Import Disparate Treatment from Banks," Working Papers CEB 13-037, ULB -- Universite Libre de Bruxelles.
    16. Namayengo., Faith & van Ophem, Johan A.C. & Antonides, Gerrit, 2016. "Women And Microcredit In Rural Agrarian Households Of Uganda: Match Or Mismatch Between Lender And Borrower?," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 10(2-3), pages 1-12, October.
    17. Joseph I. Uduji & Elda N. Okolo-Obasi, 2023. "Analysis of Rural Women’s Access to Financial Services and Corporate Social Responsibility in Nigeria’s Niger Delta Region," Working Papers of the African Governance and Development Institute. 23/080, African Governance and Development Institute..
    18. Djossou, Gbètoton Nadège Adèle & Monwanou, Djohodo Ines & Novignon, Jacob, 2016. "Improving access to microcredit in Benin: are the poor and women benefiting?," MPRA Paper 72219, University Library of Munich, Germany.
    19. Ghosh, Saibal & Vinod, D., 2017. "What Constrains Financial Inclusion for Women? Evidence from Indian Micro data," World Development, Elsevier, vol. 92(C), pages 60-81.
    20. SAM, Vichet, 2019. "Access to Formal Credit and Gender Income Gap: The Case of Farmers in Cambodia," MPRA Paper 97052, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibn:ijefaa:v:16:y:2024:i:8:p:31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.