The impact of microcredit and economic factors towards poverty reduction in Malaysia / Siti Suraya Abdul Razak

Poverty is a serious global issue that all countries may face and it is the measure of level development of the country. The issue continues in this country to make the government and other organization to implement numerous programs to reduce the poverty such as provided microcredit to the poor household. This research paper examines the impact of microcredit and economic factor towards poverty reduction in Malaysia using microcredit, employment and inflation rate factors to determine the significance relationship between microcredit and economic factors rate towards poverty reduction. This research investigates the poverty reduction as dependent variables while microcredit, employment and inflation rate is measures as independent variables for year 2002 to 2018 by using descriptive statistic, unit root test, normality test, autocorrelation test, heteroscedasticity test, correlation analysis, Ramsey test and multiple linear regression models. The result indicates that microcredit and inflation rate reduced the level of poverty that is measured by poverty headcount ratio in Malaysia. The result shows that there is positive and negative relationship between dependent variable and independent variables.