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The Impact of Microfinance on Poverty Alleviation: The Case of Pakistan

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  • Wook Sohn
  • Laila Ume

Abstract

This paper examines the effect of microfinance on poverty alleviation in Pakistan using district-level panel data. We conduct fixed effect panel regressions to show a statistically significant positive impact of microfinance on household income, ownership of household assets, education, and expenditure. These results suggest that the development of microfinance is an efficient tool for both welfare improvement and poverty alleviation in Pakistan.

Suggested Citation

  • Wook Sohn & Laila Ume, 2019. "The Impact of Microfinance on Poverty Alleviation: The Case of Pakistan," Journal of Asian Development, Macrothink Institute, vol. 5(3), pages 16-36, November.
    • Handle: RePEc:mth:jad888:v:5:y:2019:i:3:p:16-36
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    References listed on IDEAS

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    More about this item

    Keywords

    Microfinance institutions; household income; poverty alleviation; economic development; Pakistan;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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