A STUDY ON IMPACT ANALYSIS OF MICROFINANCE ON POVERTY By ...

CORE

Provided by KDI School Archives

Metadata, citation and similar papers at core.ac.uk

A STUDY ON IMPACT ANALYSIS OF MICROFINANCE ON POVERTY REDUCTION

(Econometrics Analysis using panel data from Northern Ethiopia)

By

Haftom Gebremeskel Teferi

THESIS Submitted to KDI School of Public Policy and Management in partial fulfillment of the requirements for the degree of MASTER OF PUBLIC POLICY

2011

A STUDY ON IMPACT ANALYSIS OF MICROFINANCE ON POVERTY REDUCTION

(Econometrics Analysis using panel data from Northern Ethiopia) By

Haftom Gebremeskel Teferi

THESIS Submitted to KDI School of Public Policy and Management in partial fulfillment of the requirements for the degree of MASTER OF PUBLIC POLICY

2011 Professor Sohn Wook

ABSTRACT

A STUDY ON IMPACT ANALYSIS OF MICROFINANCE ON POVERTY REDUCTION

(Econometrics Analysis using panel data from Northern Ethiopia) By

Haftom Gebremeskel Teferi

The aim of the thesis is to assess the long-run impacts of Dedebit Credit and Savings Institution (DECSI) participation on poverty reduction based on panel data from Northern rural Ethiopia spanning for ten years from 1997 to 2006. The panel household survey provides a way of controlling for the joint determination of consumption expenditure and DECSI participation, and provides framework for measuring the impact of program participation on consumption expenditure using the household level fixed effect model. The fixed effect estimation strategy has been employed to eliminate the impact of unobservable household specific characteristics and other issues of endogeniety. The household level fixed effect suggest that controlling for household demographic characteristics and other factors, program participation has a significant and positive impact on the household per capita

i

consumption expenditure and per capita food consumption expenditure. As the marginal effect shows that program participation increases the per capita consumption expenditure and per capita food expenditure by 7.3 and 10 percent respectively. In general, microfinance program has a positive and significant effect on long-term permanent consumption expenditure implying that microfinance is a critical ingredient of consumption based poverty level and hence, it is pro-poor as it enhances the welfare of households.

ii

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download