An economic impact assessment of a microcredit program in Malaysia: the case of Amanah Ikhtiar Malaysia (AIM)

Md Saad, Norma and Duasa, Jarita (2009) An economic impact assessment of a microcredit program in Malaysia: the case of Amanah Ikhtiar Malaysia (AIM). In: Annual International Conference on Global Business, 10-13 May 2009, Dubai, United Arab Emirates.

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Abstract

This study uses econometric models to evaluate the economic perlormance of clients participating in the microcredit program of Amanah Ikhtiar Malaysia (AIM). Several proxies are used for the economiSJ performance variable (dependent variables), such as level of earnings/income, ratio of spending to income and value of assets. The regressors (independent variables) used are education level, age, amount of loan, source of income, and ownership of assets. The study found that the economic perlormance of AIM participants is significantly determined by the amount of money borrowed from AIM. Other factors found to influence the respondents' economic perlormance are education level, age, gender, assets owned before joining AIM, and area of residence. Because level of education is found to contribute significantly to the economic performance of AIM participants, it is suggested that AIM should work to educate its borrowers. In particular, it should provide business training.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	1304/540
Uncontrolled Keywords:	microcredit, microfinance, poverty, Amanah Ikhtiar Malaysia (AIM)
Subjects:	H Social Sciences > HG Finance > HG3691 Credit
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Mrs. Wan Salwati Wan Salleh
Date Deposited:	23 Jun 2011 11:48
Last Modified:	30 Jan 2012 15:40
URI:	http://irep.iium.edu.my/id/eprint/540

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