| By: |
Annabel Vanroose (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and Section for Economic, Monetary and Financial Policy, Vrije Universiteit Brussel.) |
| Abstract: |
This paper presents a first set of variables that explain the differences in
the uneven development of the microfinance sector in Latin America. A
cross-country regression is applied by using a unique dataset on the outreach
of microfinance institutions in the year 2001. Results indicate that
microfinance is more present in countries that have received a higher
proportion of international support. Microfinance institutions reach more
clients in high-inflation areas. Moreover, human capital and population
density play a positive role in the growth of these institutions. The results
indicate that the regulatory environment does not seem to play a significant
role. On the other hand, the proxy for financial liberalization does. |
| Keywords: |
microfinance, Latin America, financial sector development, aid, inflation. |
| JEL: |
F35 G21 G28 O54 O57 |
| Date: |
2006–10 |
| URL: |
http://d.repec.org/n?u=RePEc:sol:wpaper:06-021&r=mfd |