Impact of Microfinance Banking on Economic/Sectoral Growth of Pakistan

Authors

  • Sadia Malik Commerce Faculty, DHACSS College for Women, Karachi Author
  • Dr. Sadaf Mustafa Assistant Professor, Department of Commerce, University of Karachi Author

Keywords:

Micro finance, sect oral growth, Agriculture sector, GDP, Service sector, research

Abstract

This study is to gauge the impact of microfinance banking on Economic/Sectoral growth in Pakistan. Highlighting and emphasizing on the principal role of microfinance banking in Pakistan like as growth rate of agricultural sector, manufacturing sector, services sector, GDP plus employment rate. Microfinance banks in Pakistan are working in specialized areas such as agricultural, manufacturing, trading and service to strengthen the employment and standard of living as well as GDP. The Granger Causality Test was applied on the time series data in EViews to investigate the data and the results indicate that microfinance banks are not performing up to the mark and government needs to pay more attention to microfinance sector if needs to eradicate the poverty and generate employment. The null hypothesis was accepted and microfinance banks showing no effects on the sectoral growth of Pakistan.

https://doi.org/10.5281/zenodo.10296325

References

E. Chuke Nwude*1 , Kenneth Chikezie Anyalechi. (2018). The Impact of Microfinance on Rural Economic Growth: The Nigerian Experience

Achouak Barguellil & Leila Bettayeb. (2020). The Impact of Microfinance on Economic Development: The Case of Tunisia

Abou-Ali, H., H. El-Azony, H. El-Laity, J. Haughton, and S Khandker (2010). ‘Evaluating the Impact of Egyptian Social Fund for Development Programmes’. Journal of Development Effectiveness

Aidoo, M., & Mensah, F.S. (2018). The causes of default loans risk in microfinance institutions in ghana: Case study of some selected microfinance institutions in kumasi and accra. Global Journal of Management And Business Research.

Akingunola, R.O., Olowofela, E.O., & Yunusa, L. (2018). Impact of microfinance banks on micro and small enterprises in ogun state, nigeria. Binus Business Review, 9(2), 163-169.

Al-Mamun, A., C.A. Malarvizhi, S. Hossain, and S.A. Wahab (2011). ‘Examining the Effect of Participation in Microcredit Programs on Assets Owned by Hardcore Poor Households in Malaysia’. African Journal of Business Management, 5

Ango (2011). The Impect of Banking Sector Reforms on Growth and Development of Entrepreneures in Nigeria.

Angelucci, M., D. Karlan, and J. Zinman (2015). ‘Microcredit Impacts: Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco’. American Economic Journal: Applied Economics

Annim, S.K., and S.E. Alnaa (2013). ‘Access to Microfinance by Rural Women: Implications for Poverty Reduction in Rural Households in Ghana’. Macrothink Institute—Research in Applied Economics,

Apere (2000 ) . The Impect of Microfinance Banks on Economic Growth in Nigeria.

Arun, T., K. Imai, and F. Sinha (2006). ‘Does the Microfinance Reduce Poverty in India? Propensity Score Matching Based on a National-level Household Data’. Development Economics and Public Policy

Ayodele Ademola & Kayode Arogundade (2014). The Impact of Microfinance on Economic Growth in Nigeria.

Azriani, Z., Paloma, C., & Usman, Y. (2018). The mapping of microfinance institutions for supporting sustainable agriculture financing in padang city.

Banerjee, A., Duflo, E., Glennerster, R., & Kinnan, C. (2015). The miracle of microfinance? Evidence from a randomized evaluation. American Economic Journal: Applied Economics

Berhane, G., and C. Gardebroek (2011). ‘Does Microfinance Reduce Rural Poverty? Evidence Based on Household Panel Data from Northern Ethiopia’. American Journal of Agricultural Economics

Bordens, K.S., & Abbott, B.B. (2002). Research design and methods: A process approach: McGraw-Hill.

Chemin, M. (2008). ‘The Benefits and Costs of Microfinance: Evidence from Bangladesh’. Journal of Development Studies

Chowdhury, S. (2017). Microfinance and rural non-farm employment in developing countries. IZA World of Labor(350).

Collins, D., J. Morduch, S. Rutherford, and O. Ruthven (2009). Portfolios of the Poor: How the World’s Poor Live on $2 a Day

Crépon, B., F. Devoto, E. Duflo, and W. Parienté (2015). ‘Estimating the Impact of Microcredit on Those Who Take It Up: Evidence from a Randomized Experiment in Morocco’. American Economic Journal

Cull, R., & Morduch, J. (2017). Microfinance and economic development: The World Bank.

Kouser, R., Ashfaq, A., & Sarwar, S. (2018). Role of Microfinance in Economic Growth: A Case Study of Pakistan. Journal of Economic and Social Development, 5(2), 58-70. doi: 10.5958/2322-0430.2018.00006.5

Naseer, M. M., & Iqbal, A. (2017). Microfinance and Economic Growth: A Case Study of Pakistan. Journal of Management Sciences, 4(2), 113-125. doi: 10.12691/jms-4-2-4

Khan, S. A., & Rashid, T. (2019). Microfinance and Poverty Alleviation: Evidence from Pakistan. Journal of Applied Economics and Business Research, 9(2), 71-80.

Mahmood, R., & Ahmad, N. (2018). Role of Microfinance in Empowering Women in Pakistan. Journal of Management Sciences, 5(1), 59-74. doi: 10.12691/jms-5-1-6

Javed, S., & Khalid, H. M. (2017). Financial Inclusion in Pakistan: The Role of Microfinance. Journal of Economics and Sustainable Development, 8(3), 51-59.

Kouser, R., & Raza, S. A. (2018). The role of microfinance in poverty alleviation and economic development in Pakistan. Journal of Business and Social Review in Emerging Economies, 4(2), 149-161.

Zaman, K., Khan, M. A., & Ahmad, M. (2015). Microfinance and poverty alleviation: Empirical evidence from Pakistan. Quality & Quantity, 49(5), 1905-1919.

Khalid, S., & Qureshi, M. A. (2017). Impact of microfinance on the empowerment of women entrepreneurs in Pakistan. Journal of Applied Environmental and Biological Sciences, 7(6S), 128-133.

Awan, M. S., & Awan, F. S. (2018). The impact of microfinance on women's empowerment in Pakistan. Journal of Finance and Economics Research, 3(2), 17-27.

Fatima, S., & Javed, S. (2017). Impact of microfinance on economic empowerment of women entrepreneurs in Pakistan. International Journal of Business and Management Invention, 6(3), 1-10.

Zafar, S. (2018). Role of Microfinance Institutions in Economic Development of Pakistan. International Journal of Business and Social Science Research, 7(1), 22-29.

Shahbaz, M., Hussain, F., & Malik, M. (2018). The Impact of Microfinance on Economic Growth in Pakistan. Journal of Economic Development, Management, IT, Finance and Marketing, 10(1), 26-40.

Haider, J., & Mahmood, K. (2019). The Impact of Microfinance on Economic Growth: Evidence from Pakistan. Journal of Managerial Sciences, 13(1), 69-83.

Khan, I. A., & Ahmed, S. (2017). The Role of Microfinance in Women Empowerment and Economic Development in Pakistan. Global Journal of Management and Business Research: E Economics and Commerce, 17(3), 14-23.

Khatoon, R., Arshad, R., & Sarwar, S. (2018). The Impact of Microfinance on Poverty Alleviation and Employment Generation in Pakistan. Global Social Welfare, 5(4), 225-232.

Downloads

Published

2022-03-31

How to Cite

Impact of Microfinance Banking on Economic/Sectoral Growth of Pakistan. (2022). International Research Journal of Management and Social Sciences, 3(1), 277-305. https://irjmss.com/index.php/irjmss/article/view/111

Similar Articles

1-10 of 262

You may also start an advanced similarity search for this article.