The Impact of Microcredit and Socioeconomic Factors on Poverty: Evidence in Indonesia Moh. Nur Khaqiqi, Lilik Sugiharti
Department of Economics, Faculty of Economics and Business, Airlangga University
Abstract
This study examines the impact of microcredit on poverty reduction by integrating per capita income, gini coefficient, education, health, inflation, and Covid-19 in Indonesia. The research employs a dynamic panel data model using the system-GMM approach, developing the poverty-growth model initially proposed by Ravallion (1997), with data spanning from 2014 to 2023. The findings demonstrate that microcredit reduces poverty. Income per capita, gini coefficient, education, health, inflation, and Covid-19 also have significant effects on poverty in Indonesia.
