عنوان مقاله [English]
Modeling the effects of microcredit on social welfare in rural areas
"A Case Study of Barakat Foundation Employment Plans in Yazd Province"
1- Abolfazl Ghaffari
1- PhD student in Economics, Mazandaran University (Responsible author)
2- Alireza Pourfaraj
2- Associate Professor of Economics, Faculty of Economics and Administrative Sciences, Mazandaran University, Babolsar, Mazandaran, Iran
3- Mohammad Taqi Gilak Hakimabadi
3- Associate Professor of Economics, Faculty of Economics and Administrative Sciences, Mazandaran University, Babolsar, Mazandaran, Iran
4- Alireza Karimi
4- Assistant Professor of Sociology, Faculty of Literature and Humanities, Kharazmi University, Tehran, Iran
The microfinance movement began in Bangladesh in the early 1970s in the face of the market failure phenomenon as well as the government's failure to provide credit to the poor and low-income people in the early 1970s. Microfinance, also known as microfinance or microfinance, is a means of providing credit, usually in the form of small unsecured loans, to non-traditional borrowers, such as the poor in rural or underdeveloped areas. A review of the literature on micro-financing goals as one of the tools and methods of economic development for the lower strata of society indicates that the four goals of economic development, poverty reduction, prevention of social unrest and profitability in the form of micro-businesses for microfinance are pursued. The experience of countries shows that microcredit is used in different ways to reduce poverty and therefore, it has different effects and consequences in the target society. Of course, in some countries, banks, as an economic enterprise that aims to maximize profits, do not do so for various reasons, such as the small amount of loans, which reduces their profits through the entry and identification of poor people. Second, paying a loan to this group of customers is associated with a lot of risk. Another issue related to banks not entering into micro-credit allocation is incomplete information that leads to maladaptive selection and ethical risks. According to the Barakat Foundation's approach to job creation and the unemployment rate of 12.7% in Yazd province in 1397, the Barakat Foundation's planning for job creation in some cities of the province, including Abarkooh, Mehriz and Bahabad, began in 1398. However, two years after the implementation of these job creation plans, examining their performance on social welfare selected from the Legatum Social Welfare Index can be effective in continuing the process.
- Discussion and Results
First, social welfare components were calculated based on the average response scores and used for statistical ranking. Economic quality has been an indicator that most respondents have been satisfied with and health index is an indicator that respondents' satisfaction is in the last rank. Second, the general view of the respondents towards the items of social welfare component was examined statistically, in which the item "the degree of attention to the lack of monopoly formation in projects" in the investment environment, the item "the rate of increasing women's labor force participation" in quality Economic, the degree of opportunity to communicate with others in social capital, the amount of "prevention of high-risk factors such as suicide" in health, and the amount of "reduction of strictness and increase of women's physical health" are in the first place in individual freedom and safety. Third, the effect of each component was examined through t-test and the results indicate the positive effect of microcredit allocation in Barakat Foundation employment models on each of the components of social welfare index, namely investment environment, economic quality, social capital, health and freedom. And has been individual safety. Fourth, the validity of the questionnaire questions was examined and confirmed by the first-order confirmatory factor analysis technique. Fifth, when a large structure itself consists of several latent variables, second-order confirmatory factor analysis is used. The results of the second-order confirmatory factor analysis of the social welfare variable show that its measurement model is appropriate and all numbers and parameters of the model are significant.
The results of the study on the validity of the scale structure, using the second-order confirmatory factor analysis, showed a high correlation between the hidden variables. Also, based on t-test, the effect of microcredit on each of the components of social welfare such as investment environment, economic quality, social capital, health and freedom and personal safety was confirmed.
Microcredit, Social Welfare, Structural Equation Modeling, Rural Areas, Yazd