Abstract
Microfinance aimed at breaking the vicious circle of poverty in Ethiopia mainly by providing loan service for rural households. The main objective of this study is to examine the impact of microfinance loan service on multidimensional poverty status of rural households by taking evidence from Amhara Credit and Saving Association. To attain this objective, the researchers collect primary data by using household survey from the total of 290 sample sizes 145 from treated group and 145 from non treated group respondents by using quasi experimental design. To analyze the data, the resrahcers employed descriptive statistics and inferential statics. The propensity score matching model result reveled that microfinance loan service has a negatively impact on the multidimensional poverty status of rural households. It is also found that microfinance loan service has reduced standard of living, health and educational dimensions of poverty respectively for rural households of the study area. It is recommended that government should give special attention to support microfinance’s who support the rural poor household heads and improve the awareness level of farmers about its role towards poverty reduction . Keywords :-Microfinance loan, Multidimensional poverty, Impact, Propensity score matching model, Gozamen district DOI: 10.7176/JPID/53-04 Publication date: March 31 st 2020
Highlights
Background of the studyMicrofinance revolution has got considerable impetus in the region of the globe in the last twenty five years
Propensity score matching model is used to examine the impact of Amhara credit and saving Association loan service on multidimensional poverty status of beneficial rural households compare to that non beneficiaries in Gozamen district since the microfinance loan service were non randomly assigned for users
This study found that 73.81 percent of rural peoples in Gozamen district are multidimensional poor, on average the poor people are deprived in 49.18 percents of the weighted indicators and the society is deprived in 36.30 percent of the total potential deprivation it could experience over all
Summary
This study found that 73.81 percent of rural peoples in Gozamen district are multidimensional poor, on average the poor people are deprived in 49.18 percents of the weighted indicators and the society is deprived in 36.30 percent of the total potential deprivation it could experience over all. 96.30 percent of peoples are multidimensional poor, on average, the poor people are deprived 66.20 percents of the weighted indicators and the society is deprived in 63.7 percent of the total potential deprivation it could experience over all and the multidimensional poverty status of rural Ethiopia is classified under extremely poor ((OPHI), 2017). The above table shows that the highest contribution to multidimensional poverty status of rural households in Gozamen District is standard of living deprivation which accounts 61.27 percent followed by education deprivation 26.24 percent and health deprivation 12.49 percent respectively. From the above table the highest share of multidimensional poverty highly comes from adult education, energy and floor having equal share, electricity, asset, clean water, sanitation, nutrition, child mortality and child education deprivation respectively
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
