Development of MSMEs: A Way to Poverty Reduction in Malkangiri District

Abstract

The purpose of this study is to look into the linkages among investment, number of MSME units and employment generation in Malkangiri districts over the period 1984-85 to 2018-19. Furthermore, it also examines the extent of poverty in the district. Over the study period, however, the analysis reveals that there is a short-run as well as a long-run relationship between investment, number of MSME units and employment generation using multiple regression analysis and error correction model. On the other hand Malkangiri district is characterised with high incidence of poverty. Therefore, the study argues that the growth of MSME units could be a solution for poverty reduction in this district. In order to reduce poverty through development of MSMEs, both government initiatives as well as public support should work together.