The Effectiveness of Micro-Credit as Tools for Boosting

This study empirically examines the impact of micro-credit of microfinance banks had on boosting entrepreneurial activities and poverty alleviation in Nigeria from 1992-2019 periods under study. The empirical results were estimated using the Augmented Dickey Fuller test, which confirms the variables to be stationary at first and second differencing. In the second test, the Johansen Co-integration test was conducted; it confirms two co-integrating equations and the presence of long-run relationship between the variables. The presence of long-run equilibrium found, led to the use of Vector Error Correction Model (VECM), wald test was conducted to ascertain the of Granger Causality in the model, the study also conduct serial correlation and stability diagnosis. The study revealed that there is no serial correlation present and that the models are dynamic stable. The entire regression result was statistically insignificant. This means that the influence of the explanatory variable on the dependent variable is statistically insignificant. The computed coefficient of simple determination shows that 55.4246% and 56.6816 of the total variation in the dependent variable [RGDP and Poverty] .

Autorentext

Ijeoma Chimaobi ha completado su primer programa de grado en el Departamento de Tecnología de Gestión Financiera de la Universidad Federal de Tecnología, Owerri, Estado de Imo, Nigeria, y actualmente está cursando su programa de máster (M.Sc) en el Departamento de Banca y Finanzas de la Universidad de Agricultura Michael Okpara, Umudike, Umuahia, Estado de Abia, Nigeria.