An empirical analysis of factors that determine poverty among the beneficiaries of Pakistan Poverty Alleviation Fund

Muhammad-Bashir Owolabi Yusuf, Nasim Shirazi and Gairuzazmi Mat Ghani

Journal of Enterprising Communities: People and Places in the Global Economy, 2016, vol. 10, issue 3, 306-320

Abstract: Purpose - This study aims to examine the determinants of poverty among microcredit beneficiaries in Pakistan Poverty Alleviation Fund. Design/methodology/approach - The study is based on a nationwide survey of microcredit beneficiaries of Pakistan Poverty Alleviation Fund. Using the national poverty line, this study classified borrowers into the poor and the non-poor. A Tobit model was estimated to examine the determinants of poverty among the borrowers. Findings - The model was found to fit the data well and six out of the ten specified independent variables are found to be statistically significant. Practical implications - The results of the study can be helpful in fully characterizing poverty dynamics and in policy formulation in using microcredit to reduce poverty. Originality/value - The paper is the first to examine the determinants of poverty among Pakistan Poverty Alleviation Fund recipients.

Keywords: Household; Determinants; Poverty; Microcredit; PPAF; Tobit regression (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jecpps:v:10:y:2016:i:3:p:306-320

DOI: 10.1108/JEC-10-2014-0023

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