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

Md Saad, Norma and Duasa, Jarita (2011) An economic impact assessment of a microcredit program in Malaysia: the case of Amanah Ikhtiar Malaysia (AIM). International Journal of Business and Society, 12 (1). pp. 1-14. ISSN 1511-6670

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Abstract

This study uses econometric models to evaluate the economic performance of clients participating in the microcredit program of Amanah Ikhtiar Malaysia (AIM). Several proxies are used for the economic 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 performance of AIM participants is significantly determined by the amount of money borrowed from AIM. Other factors found to influence the respondents’ economic performance 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:	Article (Journal)
Additional Information:	1304/9047
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 > Department of Economics
Depositing User:	Prof. Dr. Jarita Duasa
Date Deposited:	13 Dec 2011 14:47
Last Modified:	19 Jan 2012 12:49
URI:	http://irep.iium.edu.my/id/eprint/9047

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