Awojobi, Omotola and Bein, Murad (2010): Microfinancing for Poverty Reduction and Economic Development; a Case for Nigeria. Published in: International Research Journal of Finance and Economics , Vol. 1, No. 72 (11. August 2011): pp. 159-168.
Download (334kB) | Preview
The main focus of this research is to juxtapose the features of microfinancing and the institutional forbearance of economic development in Nigeria. Based on empirical study, it has been observed that poverty is multifaceted and its persistence is due to lack of productive resources. The Nigerian case reveals that the major constraint to improving the standard of living of the poor is capital (finance). This has restricted their extensive participation in economic activities which could improve their lives. For this study, our theoretical a priori expectation is that provision of microfinance services such as savings and microloans have direct impact on GDP. A causal relationship will be established and evaluated with the ‘t-test’ statistic, while the relevance of the independent variables in explaining the subject will be justified based on the F-statistic test and R2 coefficient of multi-determination. Also, using a lin-log regression model, economic growth shall be regressed on poverty level in Nigeria. This will create an assertion whether Nigeria needs a systematic reinforcement of the microfinance mechanism to propagate a soothing trend for poverty reduction and economic growth.
|Item Type:||MPRA Paper|
|Original Title:||Microfinancing for Poverty Reduction and Economic Development; a Case for Nigeria|
|English Title:||Microfinancing for Poverty Reduction and Economic Development; a Case for Nigeria|
|Keywords:||Microfinance, Poverty, Economic Development, Economic Growth, Financial Services, Gross Domestic Product|
|Subjects:||O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Omotola Awojobi|
|Date Deposited:||21. Sep 2011 17:00|
|Last Modified:||11. Feb 2013 20:24|
 Akanji, O.A., 2001. Microfinance as a Strategy for Poverty Reduction. CBN Economic and Financial Review vol., No.4
 Alegieuno, J. and Attah J., 2005. Poverty Reduction Through Microfinancing: Case of Indonesia and Philippine. Central Bank of Nigeria Bullion vol.30, No. 3 July – September.
 Bouman, F. and O. Hospes (eds.), 1994. Financial Landscapes Reconsidered. Boulder, Col: Westview.
 Ehigiamusoe, G. (2005) Poverty and Microfinance In Nigeria. Benin: OB-ZED Publishers
 Ehigiamusoe, G., 2008. The Role of Microfinance Institutions In The Economic Development of Nigeria. Central Bank of Nigeria Bullion, 32(1), 17-24.
 Keynes, J.M., 1936. The General Theory of Employment, Interest and Money. Cambridge: Macmillan and Cambridge University Press, 1991.
 Khandker S.R., 1998. Fighting Poverty with Microcredit: Experience in Bangladesh. New York: Oxford University.
 Morduch, J., Hashemi, S. and Littlefield, E., 2003. Is microfinance an effective strategy to reach the Millennium Development Goal? CGAP working paper: Focus Note 24.
 Musgrave, P. and Ferber, R., 1976. Finding the Poor and Identification of Poverty Households in Latin America. Washington D.C. Brooking Institution.
 Obadan, M.I., 2001. Poverty Reduction in Nigeria: The Way Forward. CBN Economic and Financial Review, Vol. 39, No.4
 Oladeji, S.I. and Abiola A.G., 1998. Poverty Alleviation with Economy Growth Strategy: Prospect and Challenges in Contemporary Nigeria. Nigeria Journal of Economics and Social Studies Vol.40, No.1
 Olaitan, M.A., 2001. Emerging Issues on Micro and Rural Financing in Nigeria”; Central Bank of Nigeria Bullion, 25 (1), 64-71.
 Olowoni, O., 1996. Taking Action for Poverty Reduction in Sub-Saharan Africa; World Bank Journal, Vol. 12, No. 1
 Osuji, E., 2005. Microfinance and Economic Activity: Breaking the Poverty Chain. Ibadan: Gold Press.
 Ozcan, K., 2000. Determinants of private savings in the Arab countries, Iran and Turkey. Turkey: Department of Economics, Bilkent University, Ankara.
 Roodman, D and Morduch, J., 2009. The Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence, Working Paper No. 174, Centre for Global Development, June 2009
 Samuelson, P., and Modigliani, P., 1966. The Passinetti Paradox in Neo-classical and More General Models, Review of Economic Studies 33: pp269-301.
 Schreiner, M., 2001. Informal Finance and Designing Of Microfinance. Development in Practice, Vol. 11, No. 3; p638.
 Solow, R., 1956. A Contribution to the Theory of Economic Growth; Quarterly Journal of Economics, Vol. 70, No. 1; pp 65-94.
 Todaro, M., 1982. Economics for a Developing World. Essex: Longman Group.
 United Nations, 1990 & 2009. The Human Development Report, UNDP, New York.
 World Bank, 1998. Nigeria, Poverty in the Midst of Plenty: The Challenge of Growth with Inclusions. Washington, D.C., World Bank.
 Zeller, M. and R.L. Meyer (Eds.), 2002. The Triangle of Microfinance: Financial Sustainability, Outreach and Impact. International Food Policy Research Institute; Baltimore, MD: John Hopkins University Press