|
on Microfinance |
| By: | Gehrig, Stefan; Mesoudi, Alex (University of Exeter); Lamba, Shakti |
| Abstract: | Microfinance is an economic development intervention that involves credit provision to low-income entrepreneurs. Lenders typically require joint liability, where borrowers share the responsibility of repaying a group loan. We argue that this lending practice is subject to the same fundamental cooperation problem faced by other organisms in nature, and consequently evolutionary theories of cooperation from the biological sciences can provide new insights into loan repayment behaviour. This could both inform the design of microfinance institutions, and offer a real-world test case for evolutionary theories of cooperation. We first formulate evolutionary hypotheses on group loan repayment based on assortment mechanisms like kin selection, reciprocity or partner choice. We then test them by reviewing 40 studies on micro-borrowers’ loan repayment from 31 countries. We find more supportive than contrary evidence for the hypotheses, but results are generally mixed, generating avenues for future research within this framework. Finally, we present an evolutionary game-theoretic model of group lending as a threshold public goods game which further explains some empirical findings and generates new predictions on repayment rates. Our work shows how understanding the evolution of cooperation can guide economic development interventions and, more generally, offer ultimate explanatory theories for phenomena studied by social scientists. |
| Date: | 2019–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:tmpqj&r=all |
| By: | Hengki Mangiring Parulian Simarmata (Politeknik Bisnis Indonesia) |
| Abstract: | This study was aimed to determine the effect of service quality, corporate image and credit interest rates to the decision-making of micro credit case studies in Bank Prekreditan Rakyat Karyajatnika Sadaya (BPR KS) Bandung. Research was conducted using a descriptive and verivication studies. The samples used were 110 customers of the eight micro branches of BPR KS in Bandung. Hypothesis test using Structural Equation Model (SEM) to determine the effect of service quality, corporate image and credit interest rates on microcredit decision-either partially or simultaneously. The results showed that the quality of services rated as good by the respondent, BPR KS image is also considered to be good by the consumer. Meanwhile the interest rate offered is low or deemed reasonable by consumer. The result of model testing showed a positive and significant effect between service quality and corporate image of the micro-credit retrieval, while interest rates have a negative effect on the development of decision-making on micro credit. For subsequent researchers can conduct the same research in the different area of environment and cultures characteristics or by changing the variables where loyalty and customer relationship management variables can be developed in future research models. |
| Date: | 2018–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:osf:inarxi:u9nz8&r=all |