Impact of microcredit on income, poverty, and economic vulnerability in Peninsular Malaysia

Abdullah Al-Mamun and Mohammad Nurul Huda Mazumder

Development in Practice, 2015, vol. 25, issue 3, 333-346

Abstract: This article examines the effect of Amanah Ikhtiar Malaysia's (AIM) microcredit programme on low-income households' income, poverty rate, and vulnerability in Peninsular Malaysia. This study employed a quasi-experimental approach, cross-sectional design, and stratified random sampling method. Findings indicated that participation in AIM's microcredit programme leads to an increase in household income and reduces both the poverty rate and level of economic vulnerability. AIM and policymakers, therefore, should focus on promoting a supportive environment to improve cooperation among participants by designing a dynamic and well-diversified microfinance programme and specialised skills-building training programme.

Date: 2015
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DOI: 10.1080/09614524.2015.1019339

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