The Role of Microfinance in Poverty Reduction: Evidence from South Asia

This study analyzed the impact of micro finance and macroeconomic variables on poverty at three levels. The paper covers the time period of 08 years from 2005 to 2012. A panel of 06 selected SAARC countries was taken including India, Nepal, Pakistan, Sri Lanka, Bangladesh and Bhutan. Panel data regression model was used in the study. A key finding is that microfinance reduces extreme poverty and literacy also plays a major in poverty reduction. Other findings and recommendations are discussed in the paper.