The study examined the impact of microfinance onlivelihood the main objective of the paper is to investigate and analyze theimpact of micro finance on house hold livelihood in Red Sea State. Inmethodology the study used econometric and descriptive statistical analyticalmethod. Using the regression equations. We examined the time series data asimportant step that is overlooked by many studies and research. The seriesgraph showed the instability (non-stationary) in order to address the varianceof the variance; we obtained the natural logarithm of the series data. Thus weobtained the estimates of the parameters of model as well as the counter logarithm(anti-log) using the ordinary liner simple method. It is the efficient way toobtain an efficient regression. We avoided the false regression (spuriousregression) forecasting data series in the future and this is the mostimportant of this paper. The results indicate that there is a positive impactbetween the increase of microfinance and livelihood.
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