Financial Inclusion and Poverty Mobility of the Active Poor in Port Harcourt
Abstract
This study examined the relationship between financial inclusion and economic performance of the active poor in Port Harcourt, Rivers State. Specifically, the study explored how access, usage, and quality of financial services relate with productivity, poverty mobility, and entrepreneurial activity. The study involved a population of 1,336 respondents. Using the Taro Yemane’s formula, the study derived the sample size of the study as 308. Data utilized in the study were distributed to the 308 respondents, out of which only 285 were deemed valid and admissible for the study. The study employed the descriptive statistics and Spearman Rank Correlation Coefficient at the 5% significance level. The study discovered that all the proxies of financial inclusion were positively and significantly related to each of the dimensions of economic performance of the active poor – productivity, poverty mobility, and entrepreneurial activity. The study concluded that financial inclusion significantly boosts economic performance of the active poor in Port Harcourt. Amongst others, the study recommended that financial institutions and State government development agencies should set up microcredit programs that are targeted at the active poor with minimal interest rate. This program should include a managerial approach on how to use the funds that will be allocated to them.
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Firozpur Jhirka, Haryana, India
