IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i22p6480-d288057.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/22/6480/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/22/6480/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. André Stel & Martin Carree & Roy Thurik, 2005. "The Effect of Entrepreneurial Activity on National Economic Growth," Small Business Economics, Springer, vol. 24(3), pages 311-321, February.
    2. Sharafat Ali, 2013. "The Small and Medium Enterprises and Poverty in Pakistan: An Empirical Analysis," European Journal of Business and Economics, Central Bohemia University, vol. 8(2), pages 25-301:8, July.
    3. Faiza Manzoor & Longbao Wei & Mohammad Nurunnabi & Qazi Abdul Subhan & Syed Irshad Ali Shah & Samaher Fallatah, 2019. "The Impact of Transformational Leadership on Job Performance and CSR as Mediator in SMEs," Sustainability, MDPI, vol. 11(2), pages 1-14, January.
    4. Arfin Ara BEGUM & Md. Joynal ABDIN, 2015. "Employment Generation and Poverty Alleviation through SME Cluster Development in Bangladesh," Turkish Economic Review, KSP Journals, vol. 2(1), pages 26-31, March.
    5. Grimm, Michael & Knorringa, Peter & Lay, Jann, 2012. "Constrained Gazelles: High Potentials in West Africa’s Informal Economy," World Development, Elsevier, vol. 40(7), pages 1352-1368.
    6. T. O. Akinbobola & M. O. O. Saibu, 2004. "Income inequality, unemployment, and poverty in Nigeria: a vector autoregressive approach," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 7(3), pages 175-183.
    7. Martin Ravallion & Shaohua Chen, 1999. "When Economic Reform is Faster Then Statistical Reform: Measuring and Explaining Income Inequality in Rural China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(1), pages 33-56, February.
    8. Ghul Murtaza Mailo & Ali Hassan Halepoto & Abdul Sattar Shah, 2014. "Time Series Analysis of Micro Credit and its impact on SMEs business Growth and Alleviating Poverty in Rural Sindh," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 62(11), pages 65-72, November.
    9. Mohsen Mehrara & Samaneh Seijani & Abbas Rezazadeh Karsalari, 2017. "Determinants of high-tech export in developing countries based on Bayesian model averaging," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 35(1), pages 199-215.
    10. Muhammad Asif & Miao Qing & Jinsoo Hwang & Hao Shi, 2019. "Ethical Leadership, Affective Commitment, Work Engagement, and Creativity: Testing a Multiple Mediation Approach," Sustainability, MDPI, vol. 11(16), pages 1-16, August.
    11. Maksimov, Vladislav & Wang, Stephanie Lu & Luo, Yadong, 2017. "Reducing poverty in the least developed countries: The role of small and medium enterprises," Journal of World Business, Elsevier, vol. 52(2), pages 244-257.
    12. Ammad Zafar & Sadaf Mustafa, 2017. "SMEs and its Role in Economic and Socio-Economic Development of Pakistan," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(4), pages 195-205, October.
    13. Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2005. "SMEs, Growth, and Poverty: Cross-Country Evidence," Journal of Economic Growth, Springer, vol. 10(3), pages 199-229, September.
    14. Nanak Kakwani & Hyun Hwa Son, 2016. "Social Welfare Functions and Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-58325-3, December.
    15. Solomon Akpoviroro Kowo & Olusegun Adeleke Oba Adenuga & Olalekan Owotutu Sabitu, 2019. "The role of SMEs development on poverty alleviation in Nigeria," Post-Print hal-02188849, HAL.
    16. Thorsten Beck & Asli Demirgüç-Kunt, 2004. "SMEs, Growth, and Poverty," World Bank Publications - Reports 11278, The World Bank Group.
    17. Faiza Manzoor & Longbao Wei & Tamás Bányai & Mohammad Nurunnabi & Qazi Abdul Subhan, 2019. "An Examination of Sustainable HRM Practices on Job Performance: An Application of Training as a Moderator," Sustainability, MDPI, vol. 11(8), pages 1-19, April.
    18. Nikica Mojsoska Blazevski & Marjan Petreski & Maja Ristovska, 2017. "Breaking Up the Vicious Cycle of Poverty: How Can the School Performance of Children from Low-Income Households in Macedonia Be Improved?," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 19(2), pages 5-46, December.
    19. Mair, Johanna & Marti, Ignasi, 2009. "Entrepreneurship in and around institutional voids: A case study from Bangladesh," Journal of Business Venturing, Elsevier, vol. 24(5), pages 419-435, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Collin Chikwira & Edson Vengesai & Petronella Mandude, 2022. "The Impact of Microfinance Institutions on Poverty Alleviation," JRFM, MDPI, vol. 15(9), pages 1-13, September.
    2. Sushil K. Rai & Akhilesh K. Sharma, 2020. "Causal Nexus Between FDI Inflows and Its Determinants in SAARC Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 21(2), pages 193-215, September.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.

    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. Yang Yang & Xuezheng Chen & Jing Gu & Hamido Fujita, 2019. "Alleviating Financing Constraints of SMEs through Supply Chain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    2. Muhammad Asif & Arif Jameel & Noman Sahito & Jinsoo Hwang & Abid Hussain & Faiza Manzoor, 2019. "Can Leadership Enhance Patient Satisfaction? Assessing the Role of Administrative and Medical Quality," IJERPH, MDPI, vol. 16(17), pages 1-14, September.
    3. Faiza Manzoor & Longbao Wei & Muhammad Asif & Muhammad Zia ul Haq & Hafiz ur Rehman, 2019. "The Contribution of Sustainable Tourism to Economic Growth and Employment in Pakistan," IJERPH, MDPI, vol. 16(19), pages 1-14, October.
    4. Faiza Manzoor & Longbao Wei & Abid Hussain & Muhammad Asif & Syed Irshad Ali Shah, 2019. "Patient Satisfaction with Health Care Services; An Application of Physician’s Behavior as a Moderator," IJERPH, MDPI, vol. 16(18), pages 1-16, September.
    5. Saibal Ghosh, 2023. "Gender and discouraged borrowers: Evidence from India," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1731-1752, October.
    6. M.A. Carree & A.R. Thurik, 2008. "The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries," Small Business Economics, Springer, vol. 30(1), pages 101-110, January.
    7. Shahida Kanwel & Zhou Lingqiang & Muhammad Asif & Jinsoo Hwang & Abid Hussain & Arif Jameel, 2019. "The Influence of Destination Image on Tourist Loyalty and Intention to Visit: Testing a Multiple Mediation Approach," Sustainability, MDPI, vol. 11(22), pages 1-19, November.
    8. Hugo Erken & Piet Donselaar & Roy Thurik, 2018. "Total factor productivity and the role of entrepreneurship," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1493-1521, December.
    9. Hassan Arouri & Adel Ben Youssef & Francesco Quatraro, 2016. "Entry, exit and net job creation in Tunisia: an exploratory analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(3), pages 323-337, December.
    10. 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.
    11. Saibal Ghosh, 2022. "Financing obstacles for SMEs: the role of politics," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 329-340, December.
    12. Beata Ślusarczyk & Katarzyna Grondys, 2019. "Parametric Conditions of High Financial Risk in the SME Sector," Risks, MDPI, vol. 7(3), pages 1-17, August.
    13. Túlio A. Cravo, 2010. "SMEs and economic growth in the Brazilian micro‐regions," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 711-734, November.
    14. Bui, Anh Tuan & Pham, Linh Chi & Ta, Thi Khanh Van, 2021. "Financial And Legal Obstacles And Small And Medium Firm Performance: Evidence from Middle Income East Asian," GLO Discussion Paper Series 990, Global Labor Organization (GLO).
    15. Dr. J. G. Sri Ranjith & Dr. O. G Dayaratna Banda, 2014. "Determinants of Success of Small Business: A Survey-Based Study in Kuliyapitiya Divisional Secretariat of Sri Lanka," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 38-50, June.
    16. Dr. Washington O. Okeyo Ph.D & Dr. James Gathungu, Ph.D, & Prof. Peter K’Obonyo Ph.D, 2014. "The Effect of Business Development Services on Performance of Small and Medium Manufacturing Enterprises in Kenya," International Journal of Business and Social Research, LAR Center Press, vol. 4(6), pages 12-26, June.
    17. Lin, Chen & Lin, Ping & Song, Frank, 2010. "Property rights protection and corporate R&D: Evidence from China," Journal of Development Economics, Elsevier, vol. 93(1), pages 49-62, September.
    18. Sameeksha Desai, 2009. "Measuring Entrepreneurship in Developing Countries," WIDER Working Paper Series RP2009-10, World Institute for Development Economic Research (UNU-WIDER).
    19. S.I. Ocheni & T.I. Gemade, 2015. "Effects of Multiple Taxation on the Performance of Small and Medium Scale Business Enterprises in Benue State," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(3), pages 345-364, March.
    20. Mohammed Ait Lahcen & Pedro Gomis‐Porqueras, 2021. "A Model of Endogenous Financial Inclusion: Implications for Inequality and Monetary Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(5), pages 1175-1209, August.

    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:gam:jsusta:v:11:y:2019:i:22:p:6480-:d:288057. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.