Impact of Microfinance on Income and Employment in Pakistan: A Primary Data Analysis

Authors

  • Shahina Imran Assistant Professor of Economics, Govermemt S. E. College Bahawalpur, Pakistan
  • Rana M. Imran Arshad Assistant Professor of Statistics, Secretary B.I.S.E. Bahawalpur, Pakistan

DOI:

https://doi.org/10.26710/reads.v3i1.166

Keywords:

Household Economics, Small Enterprises, Household Welfare, Small Loans

Abstract

Purpose: This paper investigates impact of microfinance on household income and employment. It is a primary data research conducted in the Bahawalpur division, Pakistan. The study employed the tool developed by Assessing the Impact of Microenterprise Services (AIMS) and Small Enterprise, Education and Promotion (SEEP). The tool has been modified in local context. The sample consists of 1524 respondents, out of which 773 are established clients (treatment group) and 751 are incoming ones (control group), belonging to different microfinance providers of Pakistan.  Independent Sample T-Test and Multiple regressions have been used for analysis. The regression analysis shows that participation to microfinance program has strong positive impact on household income while very minute positive impact on employment. Other independent variables such as prior access to any other loan, micro saving, household assets, age of respondent, gender, education and household size have positive impact on household income but a mixed impact on income generating activities.

References

Abbas, F. and et al. (2005). Microfinance Route to Income Generation and Poverty Reduction: Evidence from District Faisalabad, Pakistan. Journal of Agriculture And Social Sciences, Vol.01, No.2, pp144–147

Akhtar, N. K. (2014). The Impact of Micro Finance on the Household Income and

Consumption level in Danyore, Gilgit-Baltistan Pakistan. International Journal of Academic Research in Economics and Management Sciences January 2014, Vol. 3, No. 1, PP. 181-195

Akram M. and Hussain I.(2011). The Role of Microfinance in uplifting Income Level: A

study of District Okara, Pakistan. Interdisciplinary Journal of Contemporary

Research in Business, Institute of Interdisciplinary Business, Vol. 2, No.11, pp. 83-94

Arjumand (2004). Impact Assessment of Kashf’s Microfinance and Karvaan Enterprise

Development Programme.prepared for DFID, 2004.

Barnes, C., Gaile, G.andKimbombo, R. (2001) .Impact of Three Microfinance Programs in

Uganda. Washington, D.C. AIMS, 2001.

Barnes, C. (2001). Microfinance Program Clients and Impact: An Assessment of

Zambuko Trust, Zimbabwe. Washington, D.C. AIMS, 2001.

Brannen,C. (2010). The Impact Study of The Village Saving And Loan Association

(VLSA) Programme In Zanzibar , Tanzania. A thesis submitted to the faculty of

Wesleyan university for Bachelors of Arts degree, Department Honors in Economics.

Brüntrup, Michael, Alauddin, S.M., Huda, Afroz, and Rahman, Mizanur. (1997). Impact

Assessment of ASA. Dhaka, Bangladesh: The Association for Social

Advancement,1997.

Chen, M. A., and Snodgrass, D. (2001). Managing Resources, Activities, and Risk

in Urban India: The Impact of SEWA Bank. Washington, D.C. AIMS, 2001.

EDA Rural Systems.(2004) The Maturing of Indian Microfinance.” New Delhi, 2004

Hossain, M. (1988). Credit for the Alleviation of Rural Poverty: The Grameen Bank

in Bangladesh. Washington, D.C. IFPRI, Research Report No. 65.

Karlan, D. ( 2001) Microfinance Impact Assessments: The Perils of Using New Members

as a Control Group. Journal of Microfinance, Vol. 3, No. 2, pp. 76-85.

Khandker, S. R. (1998). Fighting Poverty with Microcredit. University Press Limited,

Dhaka, Bangladesh.

Khandker, S. R. (2005). Micro-Finance and Poverty: Evidence Using Panel Data from

Bangladesh.” World Bank Economic Review 2005.

Morduch, J. (1998). Does Microfinance Really Help the Poor? New Evidence from

Flagship Programs in Bangladesh.Princeton University working paper, 1998.

Morduch, J., & Haley, B. (2002). Analysis Of The Effects Of Microfinance On Poverty

Reduction.Working Paper No.1014, NYU Wagner.

Naureen ,U.(2010)). Impact of Microfinance on Poverty. A Ph.D thesis submitted to the

faculty of management sciences , foundation university Islamabad.

Nelson, C., MkNelly, B., Garber, C., Edgcomb, E., Horn, N., Gaile, G., Lippold, K.,&

Beard, B. (2000).Learning From Clients: Assessment Tools for Microfinance

Practitioners. Washington, DC 2009: Small Enterprise Education and Promotion

(SEEP) Network.

Pitt, M. and Khandker, S. R.(1998). The Impact of Group-Based Credit Programs on

Poor Households in Bangladesh: Does the Gender of Participants Matter? Journal of

Political Economy 106 No. 5, pp. 958-996.

Pitt, M. (1999). Reply to Jonathan Morduch's "Does Microfinance Really Help the Poor?”

New Evidence from Flagship Programs in Bangladesh.” Working Paper, Brown

University,1999.

Outcome of a BIDS Research Survey. Dhaka, Bangladesh: Grameen Trust, 1986.

Saboor , A., Maqsood H. and, Madiha M.(2009). Impact of Micro Credit in Alleviating

Poverty: An Insight from Rural Rawalpindi, Pakistan. Pakistan. Journal Of

Agriculture &Social Sciences, (2009), 7(1), pp. 90-97

Schafer, B. (2001). Guidelines for Impact Monitoring and Assessment in Microfinance

Programme. Division-41, Economic Development and Economic

Promotion, UniversumVerlagsansalt 65175 Wiebsadem.

Sebstad, J., Catherine Neill, Carolyn Barnes, and Gregory Chen. (1995). Assessing the

Impacts of Microenterprise Interventions: A Framework for Analysis. USAID

Managing for Results Working Paper No. 7. Washington, DC: USAID/CDIE.

Waheed, S. (2001). Analysis of Issue on Micro Credit: A case of two villages in Punjab.

The Pakistan development review 40:4 part II pp.723-750

Waqas, M. C. ,Fazal, M. Z., Taj, S. (2015). Effectiveness Of Micro Financing For Poverty

Alleviation: A Case Study Of Tameer Microfinance Bank Rearch Journal of Economics and Business Studies , Volume: 04, Number: 05, pp. 92-99

Downloads

Published

2020-07-25

How to Cite

Shahina Imran, & Rana M. Imran Arshad. (2020). Impact of Microfinance on Income and Employment in Pakistan: A Primary Data Analysis. Review of Economics and Development Studies, 3(1), 69-82. https://doi.org/10.26710/reads.v3i1.166