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Analysis Study Research Paper | Finance | Bangladesh | Volume 12 Issue 5, May 2023

Role of Microcredit on Poverty Reduction: A Measurement on Present On-Going Process

Helal Uddin Ahmed | Md. Golam Samdani Fakir

Abstract: A large labor force with limited employment opportunity in formal sector induces people to get access to the available employment opportunity in the informal sector. The Public Private Partners (PPP) programs of the country give direction of generating employment through informal sector. A significant number of non-government organization, state owned commercial bank and specialized banks, and novel laureate organization known as "Grameen Bank" have been taking initiative from the very beginning of 70's decade of last century to take out of doors a significant number of male and female labor force living in the backward place and surviving with an income in the level or below $1.25 dollar in a day. These charitable activities are required evaluation for measuring quality levels in different angles for increasing the coverage levels. Now, it is time to perform both qualitative and quantitative analysis for finding and practicing precocious model. To find the optimum precocious model the study tested three different models including CPI, inflow of remittances, number beneficiaries already participating and prevailing interest rate for every advance. The available data on these influential indicators are collected from the government published documents. These are used to check the suitability of the models. The values of criteria such as: AIC, BIC, R2, Adjusted R2, Cp Mallows', Durbin Watson Statistic, and one ANOVA are used to identify the best precise model. The estimated values of the co-efficient and the criteria are supporting that the models have fit up the variables significantly. The study recommends that the proper attention on the growth of the selected variable (s) can influence microcredit that will lead to a positive and higher growth in gross domestic product and eventually improve the living standard of the people.

Keywords: Microcredit, PPP, AIC, BIC, Cp Mallows

Edition: Volume 12 Issue 5, May 2023,

Pages: 294 - 297