nep-mfd New Economics Papers
on Microfinance
Issue of 2019‒09‒02
five papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Choice of Microfinance Contracts and Repayment Rates under Individual Lending: An Artefactual Field Experiment from Pakistan By Shahid Razzaque
  2. The Effects of Access to Credit on Productivity: Separating Technological Changes from Changes in Technical Efficiency By Nusrat Abedin Jimi; Plamen Nikolov; Mohammad Abdul Malek; Subal Kumbhakar
  3. The Effect of Training and Microcredit on Productive Efficiency: The Case of Haitian Peanut Farmers By Baffoe-Bonnie, Anthony; Kostandini, Genti
  4. Mobile Money, Signaling, and Market Participation: Evidence from Tanzania and Cote d’Ivoire By Yao, Becatien H.; Shanoyan, Aleksan
  5. Determinants of Mobile Money Adoption By Mahmoud, Zeinab

  1. By: Shahid Razzaque (Pakistan Institute of Development Economics, Islamabad)
    Abstract: An artefactual field experiment in a semi-rural town of district Sialkot, Pakistan was conducted using the randomly drawn subjects from the pool of potential microfinance borrowers in that area. Two different types of contracts were employed including a Non-Interest Based- Profit Sharing (PS) and a Conventional Interest Based (IB) contracts. The subjects were split into two groups where one had the option to choose from the set of available contracts while the other did not. Strong preference for PS contracts over IB contract had been observed, however the repayment rates did not differ significantly across the contracts. The female subjects showed a higher repayment rate than the male subjects. At the same time, the enforcement and penalty treatments and religiosity of the subject had a significant and positive effect on the repayment behaviour.
    Keywords: Microfinance, Individual Lending, Asymmetric Information, Interest-based contracts, Profit Sharing contracts
    JEL: C93 D03 D82 G21 O16
    Date: 2019
  2. By: Nusrat Abedin Jimi; Plamen Nikolov; Mohammad Abdul Malek; Subal Kumbhakar
    Abstract: Improving productivity among microenterprises is important, especially in low-income countries where market imperfections are pervasive, and resources are scarce. Relaxing credit constraints can increase the productivity of microenterprises. Using a field experiment involving agricultural microenterprises in Bangladesh, we estimated the impact of access to credit on the overall productivity of rice farmers and disentangled the total effect into technological change (frontier shift) and technical efficiency changes. We found that relative to the baseline rice output per decimal, access to credit resulted in, on average, approximately a 14 percent increase in yield, holding all other inputs constant. After decomposing the total effect into the frontier shift and efficiency improvement, we found that, on average, around 11 percent of the increase in output came from changes in technology, or frontier shift, while the remaining 3 percent was attributed to improvements in technical efficiency. The efficiency gain was higher for modern hybrid rice varieties, and almost zero for traditional rice varieties. Within the treatment group, the effect was greater among pure tenant and mixed-tenant microenterprise households compared with microenterprises that only cultivated their own land.
    Keywords: field experiment, microfinance, credit, Efficiency, productivity, farmers, South Asia
    JEL: E22 D20 H81 O12 O16 Q12
    Date: 2019–08
  3. By: Baffoe-Bonnie, Anthony; Kostandini, Genti
    Keywords: Productivity Analysis
    Date: 2019–06–25
  4. By: Yao, Becatien H.; Shanoyan, Aleksan
    Keywords: Agribusiness
    Date: 2019–06–25
  5. By: Mahmoud, Zeinab
    Abstract: Mobile Money (MM) services are growing very fast in the developing countries as an important tool for the financial inclusion. Many critical challenges surrounds mobile money services adoption with the most important challenges to improve the service quality, attract and retain more customers, and reduce dealing with cash. Overcoming all these challenges would allow all citizens to have full access to financial services or in other words being financially included. Recently, Financial Inclusion has received higher priority to improve financial existing and reduce poverty on large scale. It is clear that due to the large scale of mobile phone access and the existing network, mobile money on of the most key enabler to financial inclusion. However, the differences of mobile money countries, characteristics, economy, adoption variables. This Paper analyzes the mobile money success factors from seven developing countries (Egypt, Kenya, Ghana, Tanzania, Uganda, Zimbabwe, and Rwanda) where there has been successful penetration of mobile money services in order to extract the determinants of mobile money services adoption. Mobile money adoption is affected by several factors that includes country specific characteristics, regulatory considerations, and service provision characteristics as a result nine independent variables were selected to be included in this research. Two dependent variables are chosen to present the mobile money adoption, these are registered subscribers ratio and active subscribers ratio. The analysis is based on the data collected from the central banks published statistics in each country of the above-mentioned seven countries. The analysis is achieved using panel data analysis for a sample of seven African countries for the period from 2013 to 2017. Data is analyzed using the linear regression model for each dependent variable of the mobile money adoption using nine explanatory variables. The statistical analysis is done using Eviews and least square (LS) estimation techniques are used to provide further strength for the results. The paper aims to define a model for measuring mobile money adoption and defining the impact of each of the mobile money adoption determinants on the adoption level. This could be used to define recommendations or strategic decisions for policy makers or mobile money service providers in Egypt to improve mobile money adoption.
    Keywords: Financial Inclusion,Mobile Money (MM),Mobile Money Services,Mobile Money Determinants,Registered subscribers ratio,Active subscribers ratio
    Date: 2019

This nep-mfd issue is ©2019 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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