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

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.

Citation

Yusuf, M.-B.O., Shirazi, N.S. and Mat Ghani, G. (2016), "An empirical analysis of factors that determine poverty among the beneficiaries of Pakistan Poverty Alleviation Fund", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 10 No. 3, pp. 306-320. https://doi.org/10.1108/JEC-10-2014-0023