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Microcredit and Economic Welfare: Experience of Poor Rural Households from Pakistan
Author(s) -
Latif Waqas Umar,
Ullah Sana,
Ahmed Wasim,
Sultan Muhammad Umar,
Jafar Rana Muhammad Sohail,
Tariq Muhammad,
Linping Wang
Publication year - 2020
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3487
Subject(s) - poverty , welfare , consumption (sociology) , economics , selection bias , panel data , economic growth , demographic economics , poverty reduction , household income , socioeconomics , public economics , development economics , geography , sociology , market economy , econometrics , medicine , social science , archaeology , pathology
Summary This research article effort to empirically assess the effect of microcredit on household economic welfare consequences, for example income and consumption in rural Pakistan. The valuation is based on the difference‐in‐difference method that is a progressively popular technique of tackling the selection bias issue in measuring the influences of microcredit. This paper uses a 2‐year panel data set, together with both primary and secondary data gained through a household survey in rural Pakistan. Our empirical outcomes favour the full belief in the literature that participates in microcredit programme helps expand households' economic welfare, for example income and consumption. Despite the positive results on how microcredit has improved the rural households' living status, our outcomes display that the huge majority of the program applicants are non‐poor, which casts roughly uncertainties on the social potential (for example poverty alleviation) of Pakistan's microcredit programs. © 2020 John Wiley & Sons, Ltd.