The role of Income Generating Activities in poverty alleviation: econometric modelling and prediction of mitigation probabilities

Abstract

Over the past decades, income-generating activities have gained great interest in socio-economic and human development programs and strategies as one of the most adopted solutions in most developing countries to improve the living standards of their populations and consequently eradicate poverty. In this context, the objective of this work is double, it’s aims firstly to apprehend the extent to which income-generating projects contribute to poverty alleviation while defining the main factors related to activities that have a very strong impact, and secondly to build an econometric model that allows to predict the probability of success of a project in reducing poverty. The results of our logit model applied in the case of the income generating activities financed by the Social Development Agency in Casablanca-Settat region, confirmed the existence of a positive effect whereby these activities contribute in decreasing poverty.

JEL Classification: C5

Paper type: Empirical research.