New Economics Papers
on Microfinance
Issue of 2013‒08‒10
three papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Social Efficiency in Peruvian Microfinance Institutions: a semi-parametric approach By Giovanna Aguilar; Jhonatan Claussen
  2. Changing behaviour of self help group members: Pathway for sustainable rural livelihoods in Eastern India By Meena, M.S.; Singh, K.M.
  3. Bank financing of SMEs in five Sub-Saharan African countries : the role of competition, innovation, and the government By Berg, Gunhild; Fuchs, Michael

  1. By: Giovanna Aguilar (Departamento de Economía - Pontificia Universidad Católica del Perú); Jhonatan Claussen (Departamento de Economía - Pontificia Universidad Católica del Perú)
    Abstract: This study aims to assess the social efficiency of microfinance institutions (MFIs) —regulated and non-regulated— in Peru. Social efficiency is referred to the capacity of MFIs to produce more social outputs —number of poor clients and women served— without using more resources. The Data Envelopment Analysis methodology is used to carry on efficiency analysis. Additionally, we analyze the potential determinants of social efficiency of MFIs through a Tobit regression analysis in the context of panel data, in order to investigate whether differences related to the institutional nature of MFIs explain differences in social efficiency achieved by them. The study period covers the years from 2007 to 2011. The results show that non-regulated MFIs are socially more efficient. On the contrary, those MFIs which are within regulatory scheme, shown in most cases, distant positions to the efficient frontier. Regression analysis shows that being a regulated MFI negatively affects social efficiency levels, a greater presence in rural area positively affect social efficiency levels. Although there is evidence that financial returns could relate positively to social efficiency, this result does not seem to be as robust. At the other extreme, the lending technology does not seem to be relevant to explain social efficiency.
    Keywords: Microfinance, Social Efficiency, Efficiency frontiers, DEA analysis
    JEL: G21 O10 O16
    Date: 2013
  2. By: Meena, M.S.; Singh, K.M.
    Abstract: The study evaluates the behaviour construct of self help group (SHG) members. Data were solicited from randomly selected 100 SHG members of Patna district, Bihar, India at two point of time (in before and after situation), i e during 2008 and 2013. The behaviour construct developed, consisted of 30 items, for which Cronbach’s alpha coefficient of reliability was observed as 0.82. Data were solicited on three-point continuum, viz. No Change=1, Slightly Changed=2 and Highly Changed=3. The mean values of two situations (before and after situation) were compared (z-statistics) to observe the behavioural change among the SHG members. An improvement of 34.91% between pre (46.09%) and post evaluation (81%) and a significant improvement in behaviour of SHG members was observed, which exemplifies the impact of SHG approach in instilling a positive behavioural orientation. Positive behaviour could play a great role in tackling the issues of rural poverty for improving sustainable livelihood security in eastern India. To achieve this rural livelihoods must assimilate the vital facets like (i) formation and stabilization of SHGs, (ii) pro-poor financial and credit support system, (iii) market-driven and decentralized extension system, (iv) diversification towards high-value enterprises,(v) technological intervention and impact assessment, (vi) media-mix for technology transfer, (vii) frequent educational tour/visits and interaction with other SHGs and research institutes, (viii) developing leadership skills, and (ix) strong political will. Nevertheless, extension system needs to be re-oriented and revitalized with new agricultural knowledge base in emerging technologies and methodologies.
    Keywords: Behaviour, Eastern India, Livelihood Security, Self-help group
    JEL: O15 O17 O20 O31 O33 Q16 Q28
    Date: 2013–05–05
  3. By: Berg, Gunhild; Fuchs, Michael
    Abstract: This paper provides an overview of the state of access to bank financing for SMEs in five Sub-Saharan African countries and analyzes the drivers behind banks'involvement with SMEs. The paper builds on data collected through five in-depth studies in Kenya, Nigeria, Rwanda, South Africa, and Tanzania between 2010 and 2012. The paper shows that the share of SME lending in the overall loan portfolios of banks varies between 5 and 20 percent. Reasons for this finding vary, but key contributing factors are the structure and size of the economy and the extent of Government borrowing, the degree of innovation mainly as introduced by foreign entrants to financial sectors, and the state of the financial sector infrastructure and enabling environment.
    Keywords: Access to Finance,Banks&Banking Reform,Debt Markets,Financial Intermediation,Environmental Economics&Policies
    Date: 2013–08–01

This issue is ©2013 by Aastha Pudasainee and Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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