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Social and Behavioral Sciences Commons

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Economics

American University in Cairo

Theses and Dissertations

2011

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Microfinance And Poverty Alleviation: A Case Study Of Al-Darb Al-Ahmar District In Cairo, Egypt, Noran Mohammed Farag Apr 2011

Microfinance And Poverty Alleviation: A Case Study Of Al-Darb Al-Ahmar District In Cairo, Egypt, Noran Mohammed Farag

Theses and Dissertations

This thesis tests whether microcredit offered by MFIs succeeded, from the perspectives of beneficiaries, in reducing the poverty of borrowers in poor areas in Cairo using the example of First Microfinance as a case study. The data was gathered using a tailored questionnaire on a sample of 151 beneficiaries. A linear regression model is used with the dependent variable as the difference in wealth indices before and after acquiring the loan and a set of independent variables. Microfinance showed a positive effect on poverty reduction but with a small magnitude. The results show that the lack of training provided to …