New Economics Papers
on Microfinance
Issue of 2006‒11‒04
one paper chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. The uneven development of microfinance: A Latin-American perspective By Annabel Vanroose

  1. 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

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