nep-mfd New Economics Papers
on Microfinance
Issue of 2013‒11‒09
three papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. Role of regulation and micro finance in Africa, Asia and Latin America By Marianne, Roedl
  2. Pauvreté et microfinance au Congo Kinshasa : une approche par l’analyse factorielle discriminante By Ngunza Maniata, Kevin
  3. What have we learned from the enterprise surveys regarding access to credit by SMEs ? By Kuntchev, Veselin; Ramalho, Rita; Rodriguez-Meza, Jorge; Yang, Judy S.

  1. By: Marianne, Roedl
    Abstract: An innovative aspect of this paper is evidenced through its recommendation of the Micro-Savings Requirement Scheme - which offers numerous benefits – as will be highlighted in this paper. Furthermore, the paper not only addresses how linkages, direct and facilitating linkages, can benefit microfinance institutions – and particularly in jurisdictions where the Savings Group Outreach involvement is particularly low, but also illustrates ways and means whereby group lending and other more recent innovative methods used by micro lenders to secure repayments, could increase the desired effects, efficiency and impact of microfinance in selected jurisdictions. In so doing, it addresses some of the existing and persisting problems of micro finance in rural areas.
    Keywords: microfinance; regulation; agency theory; Micro-Savings Requirement Scheme; Africa; Asia; Latin America
    JEL: D82 G2 G21 K2
    Date: 2013–11–03
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:51177&r=mfd
  2. By: Ngunza Maniata, Kevin
    Abstract: The objective of fight against poverty was at the origin of the creation of the institutions of microfinance (IMF) which thus drained public financings and created strong waitings, as well for their customers as at the macro-economic level. Today, certain authors underline the limits of the microfinance and question its impact on the development. What happens really? What do the impact studies learn on the contribution from the microfinance to the poverty reduction in the developing countries? The first impact waited of the microfinance, taking into account its objectives, is on the level of its customers. This article proposes a combination of the multivaried statistics’ approach with the use of the most usual measurements as regards poverty approach on the whole of the units (recipients and not recipients of the financial services) and of the decompositions analysis according to sub-groups' of interest (recipient or not, men/women) for the poverty analysis and the role of the institutions of microfinance (IMF) in a poor and precarious congolese environment.
    Keywords: Poverty, Microfinance, Canonical Discriminant Analysis
    JEL: C19 G21 I32
    Date: 2013–10–31
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:51161&r=mfd
  3. By: Kuntchev, Veselin; Ramalho, Rita; Rodriguez-Meza, Jorge; Yang, Judy S.
    Abstract: Using a unique firm level data set -- the Enterprise Surveys -- this paper develops a new measure of credit-constrained status for firms using hard data instead of perceptions data. The paper classifies firms into four ordinal categories: Not Credit Constrained, Maybe Credit Constrained, Partially Credit Constrained, and Fully Credit Constrained to understand the characteristics of the firms that fall into each group. Comparable data from the Enterprise Surveys for 116 countries are used to look at the relationship between firm size and credit-constrained status. First, the analysis finds that small and medium enterprises are more likely to be credit constrained (either partially or fully) than large firms. Furthermore, small and medium enterprises finance their working capital and investments mainly through trade credit and informal sources of finance. These two results hold to a large extent in all the regions of the developing world. Second, although size is a significant predictor of the probability of being credit constrained, firm age is not. Third, high-performing firms, as measured by labor productivity, are less likely to be credit constrained. This result applies to all firms but is not as strong for small firms as it is for large and medium firms. Finally, in countries with high private credit-to-gross domestic product ratios, firms are less likely to be credit constrained. Given the importance of access to credit for firm growth and efficiency, this paper confirms that throughout the developing world access to credit is inversely related to firm size but positively related to productivity and financial deepening in the country.
    Keywords: Access to Finance,Banks&Banking Reform,Bankruptcy and Resolution of Financial Distress,Microfinance,Investment and Investment Climate
    Date: 2013–10–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6670&r=mfd

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