Journal of Islamic Monetary Economics and Finance
Vol 10 No 2 (2024)

ASSESSING THE VIABILITY OF MUZA’RAH AGRO FINANCING AS A SUSTAINABLE SOLUTION FOR SMALL-SCALE FARMERS: A CASE STUDY FROM PAKISTAN

Hamza, Sahibzada Muhammad (Unknown)
Shirazi, Nasim Shah (Unknown)



Article Info

Publish Date
31 May 2024

Abstract

The interplay between the Muza’rah (Sharecropper) agro-financing structure and its impact on rural income and rural poverty alleviation constitutes a multifaceted phenomenon. In this study, we seek to understand of the relation between Muza’rah agro-financing structure and rural income and the mediating role of national agricultural output for the case of Pakistan, a predominantly Muslim country characterized by a well-established Islamic banking and finance infrastructure. Using data from the Pakistan Social and Living Standard Survey (PSLM), the research reveals that the rural per capita income is significantly and negatively related to the Muza’rah agro-financing structure, which is further strengthened by the level of the national agricultural output. The finding underscores the importance of nuanced understanding for policymakers and practitioners engaged in poverty alleviation efforts, emphasizing the need to consider contextual variables and a nation's developmental status when designing interventions to improve rural livelihoods.

Copyrights © 2024






Journal Info

Abbrev

JIMF

Publisher

Subject

Economics, Econometrics & Finance

Description

JIMF is an international peer-reviewed and scientific journal which is published quarterly by Bank Indonesia Institute. JIMF is a type of scientific journal (e-journal) in Islamic economics, monetary, and finance. By involving a large research communiy in an innovative public peer-review process, ...