{"title":"Islamic microfinance services: a catalyst for poverty reduction in eastern Ethiopia","authors":"Anwar Adem Shikur, Erhan Akkas","doi":"10.1108/imefm-09-2023-0327","DOIUrl":null,"url":null,"abstract":"<h3>Purpose</h3>\n<p>This study aims to examine the influence of Islamic microfinance services (IMFS) on poverty reduction in the eastern part of Ethiopia.</p><!--/ Abstract__block -->\n<h3>Design/methodology/approach</h3>\n<p>A binary logistic regression model was used to analyze poverty reduction and income, education, household size, age and saving of IMFS through a semi-closed questionnaire by using a purposive sampling technique. A semi-closed interview with higher officials from an Islamic microfinance service was also used.</p><!--/ Abstract__block -->\n<h3>Findings</h3>\n<p>The study results show that the income, education, household size and age of the IMFS’ clients are the major influencing factors that affect poverty reduction in Ethiopia.</p><!--/ Abstract__block -->\n<h3>Practical implications</h3>\n<p>The study’s findings provide insights for policymakers to revise intensively their regulations and directives for Islamic microfinance operators. It emphasizes the government’s role in serving the community’s interests through financial inclusion and in developing programs to enhance the effectiveness of Islamic microfinance operations in the poverty reduction process. As a social implication, Islamic microfinance service providers gain insights into how beneficiary-side variables contribute to the country’s poverty reduction after offering Islamic microfinance products to them.</p><!--/ Abstract__block -->\n<h3>Originality/value</h3>\n<p>The results of this study are distinctive because they show how poverty reduction in Ethiopia is influenced by how income level is increased, how better educational level is attained, how household size is managed and how well the age of the client is effectively used for productivity. The paper also provides a new view of Islamic microfinance in Ethiopia, its influencing factors for poverty reduction and challenges with the operating system.</p><!--/ Abstract__block -->","PeriodicalId":47091,"journal":{"name":"International Journal of Islamic and Middle Eastern Finance and Management","volume":"61 1","pages":""},"PeriodicalIF":2.8000,"publicationDate":"2024-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Islamic and Middle Eastern Finance and Management","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1108/imefm-09-2023-0327","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Purpose
This study aims to examine the influence of Islamic microfinance services (IMFS) on poverty reduction in the eastern part of Ethiopia.
Design/methodology/approach
A binary logistic regression model was used to analyze poverty reduction and income, education, household size, age and saving of IMFS through a semi-closed questionnaire by using a purposive sampling technique. A semi-closed interview with higher officials from an Islamic microfinance service was also used.
Findings
The study results show that the income, education, household size and age of the IMFS’ clients are the major influencing factors that affect poverty reduction in Ethiopia.
Practical implications
The study’s findings provide insights for policymakers to revise intensively their regulations and directives for Islamic microfinance operators. It emphasizes the government’s role in serving the community’s interests through financial inclusion and in developing programs to enhance the effectiveness of Islamic microfinance operations in the poverty reduction process. As a social implication, Islamic microfinance service providers gain insights into how beneficiary-side variables contribute to the country’s poverty reduction after offering Islamic microfinance products to them.
Originality/value
The results of this study are distinctive because they show how poverty reduction in Ethiopia is influenced by how income level is increased, how better educational level is attained, how household size is managed and how well the age of the client is effectively used for productivity. The paper also provides a new view of Islamic microfinance in Ethiopia, its influencing factors for poverty reduction and challenges with the operating system.
期刊介绍:
The International Journal of Islamic and Middle Eastern Finance and Management (IMEFM) publishes quality and in-depth analysis on current issues within Islamic and Middle Eastern finance and management. The journal welcomes strong evidence-based empirical studies and results-focused case studies that share research in product development and clarify best practices. The title is also keen to consider work from emerging authors. IMEFM has just also accepted into Clarivate''s SSCI in 2018, and its IF will be available in summer 2019, with citations dating from 2016. The coverage includes but is not limited to: -Islamic finance: Fundamentals, trends and opportunities in Islamic Finance, Islamic banking and financial markets, Risk management, Corporate finance, Investment strategy, Islamic social finance, Financial planning, Housing finance, Legal and regulatory issues, -Islamic management: Corporate governance, Customer relationship management and service quality, Business ethics and corporate social responsibility, Management styles and strategies in Shariah environments, Labour and welfare economics, Political economy. The journal is the only title aiming to give an interdisciplinary and holistic view on Islamic finance and business management practices in order to inform these two intertwined communities.