nep-mfd New Economics Papers
on All new papers
Issue of 2014‒09‒08
four papers chosen by
Olivier Dagnelie
Université de Namur

  1. Influence of External Funding on Microfinance Performance By Janda, Karel; Van Tran, Quang; Zetek, Pavel
  2. Sequential lending with dynamic joint liability in micro-finance By Shyamal Chowdhury; Prabal Roy Chowdhury; Kunal Sengupta
  3. Microfinance around the world – regional SWOT analysis By Harmincova, Zuzana; Janda, Karel
  4. Female labour force participation in Bangladesh : trends, drivers and barriers By Rahman, Rushidan I; Islam, Rizwanul

  1. By: Janda, Karel; Van Tran, Quang; Zetek, Pavel
    Abstract: The aim of paper is to determine whether macroeconomic development and the size of banking sector affect the range of external funding and consequently the importance of these debt sources for microfinance performance. Our findings reveal that the growth of external sources is positively influenced by economic grow, level of corruption, unemployment or under certain conditions by the development of banking sector, as well. Likewise, their presence can have a positive impact on the number of clients, portfolio quality, margin or cost policy of MFIs. The opposite effect can appear if the ratio of external funding to total assets increases over time.
    Keywords: microfinance; macroeconomic indicators; banking sector; external funding
    JEL: G21 H25 O11 O17
    Date: 2014–08–29
  2. By: Shyamal Chowdhury; Prabal Roy Chowdhury; Kunal Sengupta
    Abstract: This paper develops a theory of sequential lending in groups in micro-finance that centers on the notion of dynamic incentives, in particular the simple idea that default incentives should be relatively uniformly distributed across time. In a framework that allows project returns to accrue over time (rather than at a single point), as well as strategic default, we show that sequential lending can help resolve problems arising out of coordinated default, thus improving project efficiency vis-a-vis individual lending. Inter alia, we also provide a justification for the use of frequent repayment schemes, as well as demonstrate that, depending on how it is manifested, social capital has implications for project efficiency and borrower default. We then examine the optimal choices for the MFI, demonstrating that the MFI opts for higher project sizes under group lending with limited collusion, and also provide a plausible explanation of the transition from group to individual lending.
    Keywords: collusion; coordinated default; dynamic incentives; group-lending; micro- finance; sequential financing; social capital; social sanctions
    Date: 2014–08
  3. By: Harmincova, Zuzana; Janda, Karel
    Abstract: The paper focuses on comparison of the functioning of microfinance in various developing regions of the world, as well as on the analysis of the overall functioning, effectiveness, strengths and weaknesses, potential threats and opportunities in the microfinance markets. The conclusion offers several possibilities and insights on how microfinance could be more efficient in financial terms. The paper also presents a brief evaluation of the benefits of microfinance and based on its findings provides a prediction of further development of microfinance.
    Keywords: Microfinance; microcredit
    JEL: G21
    Date: 2014–08–28
  4. By: Rahman, Rushidan I; Islam, Rizwanul
    Abstract: In contrast to the stylized implications of the U-shaped hypothesis, there has been an increase in female labour force participation in Bangladesh, alongside the acceleration in economic growth since the 1990s. In this regard, Bangladesh has witnessed a substantial increase in female employment in labour- intensive export-oriented industries in urban areas. The study also finds that the rapid expansion of micro-finance in rural areas has supported women’s employment. However, the economy in general and women’s employment in urban areas in particular seem to be too dependent on a single industry. Moreover, issues relating to the level of and gender differential in wages, and other aspects of compliance with labour standards remain. Empirical analysis carried out in the present study indicate that further progress is needed in improving women’s access to education and skill training, productive assets like land and credit beyond microcredit, and services of various government institutions. Improvement is also needed in the social norms and environment that often act as barriers to women’s employment.
    Keywords: women workers, labour force participation, employment, Bangladesh, travailleuses, taux d'activité, emploi, Bangladesh, trabajadoras, tasa de actividad de mano de obra, empleo, Bangladesh
    Date: 2013

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