Abstract
The purpose of this paper is to investigate the role of people’s credit banks (BPRs), a predominant form of microfinance in Indonesia, in mitigating poverty. Using panel data from 31 provinces in Indonesia, this study employs static panel and panel models with instrument variables. Our findings sub-stantiate that BPR credit significantly contributes to poverty reduction across various indices, including headcount poverty, poverty gap, and poverty sever-ity measures. The empirical results offer valuable insights into the efficacy of targeted microfinance as a potent tool for poverty alleviation in developing economies.
| Original language | English |
|---|---|
| Pages (from-to) | 647-664 |
| Number of pages | 18 |
| Journal | Journal of Business Economics and Management |
| Volume | 25 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - 8 Aug 2024 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 1 No Poverty -
SDG 8 Decent Work and Economic Growth -
SDG 10 Reduced Inequalities
Keywords
- credit
- Indonesia
- microfinance
- people's credit banks
- poverty
- provincial panel
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