nep-mfd New Economics Papers
on Microfinance
Issue of 2016‒11‒20
three papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Empowering the Vulnerable to Be Entrepreneurs: An Empirical Test on the Effectiveness of the Ghana Microfinance Policy 2006 By Diaz-Serrano, Luis; Sackey, Frank Gyimah
  2. Mobile Phone Technologies, Agricultural Production Patterns, and Market access in Uganda By Sekabira, Haruna; Qaim, Matin
  3. The smallholder development by remittances of migrants By Name, M.; Lebailly, Ph.

  1. By: Diaz-Serrano, Luis (Universitat Rovira i Virgili); Sackey, Frank Gyimah (Universitat Rovira i Virgili)
    Abstract: The study aims at testing the Ghana Microfinance Policy set up to support the vulnerable through access to credit. We resort to the Blinder-Oaxaca decomposition to determine if there is positive discrimination in favor of women and young entrepreneurs in the rationing behavior of the microfinance companies. This is what we should expect if the policy is effective. Our results show that even after controlling for a large number of borrower characteristics, microfinance type and credit worthiness variables, there is positive discrimination that favors female and young entrepreneurs as this discrimination is largely determined by the differential treatment these groups receive in respect of men and older borrowers from microfinance institutions. Our results show that the Government microfinance is the most severe in the rationing behavior towards the discriminating groups.
    Keywords: credit rationing, Ghana, microfinance, positive discrimination
    JEL: G21 J16
    Date: 2016–10
  2. By: Sekabira, Haruna; Qaim, Matin
    Abstract: Through various applications, the importance of mobile technologies has been more evident in developing economies since the late 1990s. One such application has been mobile money services, where mobile network subscribers transfer money electronically via a mobile phone, thus eliminating some of the developing countries’ persistent barriers to financial services for instance financial market exclusion and remoteness. Despite mobile technologies’ anticipated potential towards rural socio-economic development, there is however yet a very limited empirical focus on their welfare impacts. Using regression models and a panel data of 874 observations collected from predominantly coffee farmers in central Uganda, we argue that mobile money use has a positive impact on several income-enhancing mechanisms along the income pathway to smallholder household welfare. Compared to non-users, rural households using mobile money sell more of their coffee produce in a high-value form as shelled beans, receive higher prices for these shelled beans, and earn more off-farm income, with or without remittances. All these mechanisms enhance incomes, thus welfare.
    Keywords: Marketing, Production Economics, Research and Development/Tech Change/Emerging Technologies,
    Date: 2016–09
  3. By: Name, M.; Lebailly, Ph.
    Abstract: The following pages report the results of our survey conducted among (Malian, Senegalese and Mauritanian) Soninké migrants during the period of 14th to 4 December 2015, living in the social residences of the former home Pinel (first home of migrant workers in France). This survey had to aim to discuss the implementation and use of a new tool to transfer the money in order to reduce use of informal channels, to promote financial inclusion, to finance smallholding and to develop entrepreneurship in rural by granting of credits medium or long term via Microfinance Institutions (IMF).
    Keywords: Remittances, Smallholding, Rural entrepreneurship, Community/Rural/Urban Development, Industrial Organization,
    Date: 2016–09

This nep-mfd issue is ©2016 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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