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

An empirical analysis of factors that determine poverty among the beneficiaries of Pakistan... PurposeThis study examines the determinants of poverty among microcredit beneficiaries in Pakistan Poverty Alleviation Fund.Design/methodology/approachThe study is based on nationwide survey of microcredit beneficiaries of Pakistan Poverty Alleviation Fund. Using the national poverty line, we have classified borrowers into the poor and the non-poor. A Tobit model was estimated to examine the determinants of poverty among the borrowers.FindingsThe model was found to fit the data well and six out of the ten specified independent variables are found to be statistically significant.Practical implicationsThe results of the study can be helpful in fully characterizing poverty dynamics and in policy formulation in using microcredit to reduce poverty.Originality/valueThe paper is the first to examine the determinants of poverty among Pakistan Poverty Alleviation Fund recipients. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Enterprising Communities: People and Places in the Global Economy Emerald Publishing

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

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1750-6204
DOI
10.1108/JEC-10-2014-0023
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study examines the determinants of poverty among microcredit beneficiaries in Pakistan Poverty Alleviation Fund.Design/methodology/approachThe study is based on nationwide survey of microcredit beneficiaries of Pakistan Poverty Alleviation Fund. Using the national poverty line, we have classified borrowers into the poor and the non-poor. A Tobit model was estimated to examine the determinants of poverty among the borrowers.FindingsThe model was found to fit the data well and six out of the ten specified independent variables are found to be statistically significant.Practical implicationsThe results of the study can be helpful in fully characterizing poverty dynamics and in policy formulation in using microcredit to reduce poverty.Originality/valueThe paper is the first to examine the determinants of poverty among Pakistan Poverty Alleviation Fund recipients.

Journal

Journal of Enterprising Communities: People and Places in the Global EconomyEmerald Publishing

Published: Aug 8, 2016

References