International Journal of Business Ethics in Developing Economies

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EmpiricalAnalysis of Microfinance and Economic Growth in Yemen


Affiliations
1 Research Scholar, Department of Post Graduate Studies and Research in Commerce, Mangalore University, Karnataka, India
2 Associate Professor and Research Guide, Department of Commerce, University College, Mangalore, Karnataka, India
     

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Recently, interest in microfinance has increased, as the concept of financing has been developed to help small enterprises that do not have access to bank funds. Thus, supporting small projects contributes to economic transformation by providing job opportunities and alleviating poverty. So Data is collected from the social fund for development reports for the total financing loans provided by 11 microfinance programs through the Small and Micro Enterprise Development Unit, which is responsible for ensuring the continuity of providing financial and non-financial services to owners of small and micro-enterprises, where Economic growth data is collected from the World Bank. The study aimed to examine the impact of microfinance, represented by gross portfolio loans, and economic growth, by GDP. Secondary annual data of 21 years, from 2000 to 2020, is analysed using SPSS, correlation coefficient, and regression. The results revealed a statistically significant and positive relationship between GDP and gross portfolio loans of microfinance providers in Yemen and shows the significant impact of portfolio loans, representing microfinance, on GDP. Therefore, we recommend that the government improve small businesses’ work environment and support microfinance enterprises to promote economic growth.

Keywords

Microfinance, GDP, Correlation, Regression, Yemen
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  • EmpiricalAnalysis of Microfinance and Economic Growth in Yemen

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Authors

Mohammed H. A Al-Shawesh
Research Scholar, Department of Post Graduate Studies and Research in Commerce, Mangalore University, Karnataka, India
Yathish Kumar
Associate Professor and Research Guide, Department of Commerce, University College, Mangalore, Karnataka, India

Abstract


Recently, interest in microfinance has increased, as the concept of financing has been developed to help small enterprises that do not have access to bank funds. Thus, supporting small projects contributes to economic transformation by providing job opportunities and alleviating poverty. So Data is collected from the social fund for development reports for the total financing loans provided by 11 microfinance programs through the Small and Micro Enterprise Development Unit, which is responsible for ensuring the continuity of providing financial and non-financial services to owners of small and micro-enterprises, where Economic growth data is collected from the World Bank. The study aimed to examine the impact of microfinance, represented by gross portfolio loans, and economic growth, by GDP. Secondary annual data of 21 years, from 2000 to 2020, is analysed using SPSS, correlation coefficient, and regression. The results revealed a statistically significant and positive relationship between GDP and gross portfolio loans of microfinance providers in Yemen and shows the significant impact of portfolio loans, representing microfinance, on GDP. Therefore, we recommend that the government improve small businesses’ work environment and support microfinance enterprises to promote economic growth.

Keywords


Microfinance, GDP, Correlation, Regression, Yemen

References