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on Microfinance |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | The purpose of this study is to complement extant literature by examining how mobile money innovations can moderate the unfavorable incidence of female unemployment on female doing of business in 44 countries from sub-Saharan Africa for the period 2004 to 2018. The empirical evidence is based on interactive quantile regressions. The employed doing business constraints are the procedures a woman has to go through to start a business and the time for women to set up a business, while the engaged mobile money innovations are: (i) registered mobile money agents (registered mobile money agents per 1000 km2 and registered mobile money agents per 100 000 adults) and (ii) active mobile money agents (active mobile money agents per 1000 km2 and active mobile money agents per 100 000 adults). The hypothesis that mobile money innovation moderates the unfavorable incidence of female unemployment on business constraints is overwhelmingly invalid. The invalidity of the tested hypothesis is clarified, and the policy implications are discussed. |
| Keywords: | Mobile phones; financial inclusion; women; doing business; sub-Saharan Africa |
| JEL: | G20 O40 I10 I20 I32 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/033&r=mfd |
| By: | Lucia Dalla Pellegrina; Damla Diriker; Paolo Landoni; Davide Moro; Mahinda Wijesiri |
| Abstract: | This paper contributes to a growing body of literature on microfinance institutions, where the equilibrium between social and financial sustainability is one of the hottest topics. However, the evidence regarding this relationship in the European microfinance sector is scarce. In the current study, we intend to fill this knowledge gap. Specifically, using an original dataset obtained from a survey conducted in 2016-2017 on 159 Microfinance institutions (MFIs) operating in 38 European countries, we investigate whether pursuing proactive social sustainability can improve financial sustainability, measured by technical efficiency. Overall, our results show that MFIs that are more likely to comply with their social sustainability objectives (especially on the extensive margin, with a higher number of loans granted and on the intensive margin, by serving a higher share of women) are also doing well financially. The only aspect on which social sustainability does not seem to have a positive effect on financial sustainability is the financing of the poorest through the provision of small-scale loans. These peculiarities are somehow common to other non-European contexts. On the other hand, a phenomenon that seems peculiar to the European context is that larger MFIs, especially those operating in a context not subject to stringent financial regulation tend to show a comparative advantage and better withstand competition from the traditional banking sector. Our results are robust to alternative measures of financial sustainability and to the use of the Generalized Method of Moments (GMM) and Instrumental Variable (IV) estimation techniques to overcome the problem of endogeneity. |
| Keywords: | Microfinance, European Union, social sustainability, outreach, mission drift, financial sustainability. |
| JEL: | G21 I32 L26 O16 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:515&r=mfd |
| By: | Lucia Dalla Pellegrina; Damla Diriker; Paolo Landoni; Davide Moro; Mahinda Wijesiri |
| Abstract: | This paper contributes to a growing body of literature on microfinance institutions, where the equilibrium between social and financial sustainability is one of the hottest topics. However, the evidence regarding this relationship in the European microfinance sector is scarce. In the current study, we intend to fill this knowledge gap. Specifically, using an original dataset obtained from a survey conducted in 2016-2017 on 159 Microfinance institutions (MFIs) operating in 38 European countries, we investigate whether pursuing proactive social sustainability can improve financial sustainability, measured by technical efficiency. Overall, our results show that MFIs that are more likely to comply with their social sustainability objectives (especially on the extensive margin, with a higher number of loans granted and on the intensive margin, by serving a higher share of women) are also doing well financially. The only aspect on which social sustainability does not seem to have a positive effect on financial sustainability is the financing of the poorest through the provision of small-scale loans. These peculiarities are somehow common to other non-European contexts. On the other hand, a phenomenon that seems peculiar to the European context is that larger MFIs, especially those operating in a context not subject to stringent financial regulation tend to show a comparative advantage and better withstand competition from the traditional banking sector. Our results are robust to alternative measures of financial sustainability and to the use of the Generalized Method of Moments (GMM) and Instrumental Variable (IV) estimation techniques to overcome the problem of endogeneity. |
| Keywords: | Microfinance, European Union, social sustainability, outreach, mission drift, financial sustainability. |
| JEL: | G21 I32 L26 O16 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:511&r=mfd |
| By: | Orazio Attanasio; Anjini Kochar; Aprajit Mahajan; Vaishnavi Surendra |
| Abstract: | Evaluations of group savings and lending programs have largely focused on average impacts, rather than distributional impacts — finding modest effects on long-term economic well-being. In this paper, we exploit the randomized roll-out of a self-help group lending program in rural Bihar, India (Hoffmann et al., 2021) to demonstrate that well-functioning groups facilitate risk-sharing within rural communities. We find no impact of the program on risk-sharing, measured as a reduction in the variance of consumption growth, in the aggregate. However, the program significantly improves risk-sharing in regions where it had greater institutional capacity and was better implemented. Building on our theoretical framework, we provide evidence of a specific channel of impact: program quality and pre-existing scale improve the quality and functioning of groups, which in turn increase the insurance value of the program to communities. |
| JEL: | D14 G21 I38 O13 O16 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31245&r=mfd |
| By: | Mohamed Adaskou (FSJES - Faculté des sciences juridiques économiques et sociales d’Agadir); Abdelkarim Hssoune (FSJES - Faculté des sciences juridiques économiques et sociales d’Agadir) |
| Abstract: | This article examines the determinants of demand for microcredit by small family farms in the Chtouka-Ait-Baha province of Morocco. The study was conducted with 296 farmers using a stratified sampling method.The data was analyzed using Logit model. The results show that socioeconomic characteristics such as income, facing usury interest and proximity to microcredit association (MCA) have a negative and significant relationship with the probability of microcredit demand. However, credit information and engagement in non-agricultural activities have a positive and significant relationship with the probability of microcredit demand. With regard to the intrinsic characteristics of small family farms, the study shows a negative relationship between the number of cattle and the available surface area with the probability of microcredit demand, and a positive relationship between the cultivated area and microcredit demand. This article recommends the implementation of financial products that are better suited to the needs of small family farms and a better structuring of the agricultural sector to improve access to financing and encourage diversification of activities. These recommendations can strengthen the role of microcredit associations in financing small family farms in Morocco and contribute to the economic and social development of rural areas. |
| Abstract: | Cet article examine les déterminants de la demande de microcrédit par les petits exploitants agricoles familiaux dans la province Chtouka-Ait-Baha au Maroc. L'étude a été menée auprès de 296 exploitants agricoles en utilisant une méthode de sondage stratifiée. Les données ont été analysées à l'aide d'un modèle Logit. Les résultats montrent que les caractéristiques socioéconomiques telles que le revenu, la confrontation de l'intérêt à l'usure et la proximité de l'Association de microcrédit (AMC) ont une relation négative et significative avec la probabilité de demande de microcrédit. Cependant, l'information sur le crédit et l'exercice d'une activité non agricole ont une relation positive et significative avec la probabilité de demande de microcrédit. En ce qui concerne les caractéristiques intrinsèques des petites exploitations agricoles familiales, l'étude montre une relation négative entre le nombre de bovins et la superficie disponible avec la probabilité de demande de microcrédit, et une relation positive entre la superficie cultivée et la demande de microcrédit. L'article recommande la mise en place de produits financiers plus adaptés aux besoins des petites exploitations familiales et une meilleure structuration du secteur agricole pour améliorer l'accès aux financements et encourager la diversification des activités. Ces recommandations peuvent renforcer le rôle des associations de microcrédit dans le financement des petites exploitations agricoles familiales au Maroc et contribuer ainsi au développement économique et social des zones rurales. |
| Keywords: | Chtouka-Ait-Baha, determinant, logit model, microcredit, small family farm, déterminant, microcrédit, modèle logit, petite exploitation familiale |
| Date: | 2023–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04070987&r=mfd |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This paper assesses the role of financial inclusion in moderating the incidence of entrepreneurship on energy poverty in Ghana. The assessment is made by using pooled data and two stage least squares. The exposition builds from the 7th (GLSS7) and 6th (GLSS6) rounds focusing on the Ghana Living Standards Survey (GSS, 2014, 2019) that is collected by the Ghana Statistical Service (GSS) from ten principal regions in the country. The findings show that entrepreneurship has an unconditional positive incidence on energy poverty while the interactive incidence between entrepreneurship and financial inclusion on energy poverty is negative. The corresponding financial inclusion policy thresholds that should be exceeded in order for financial inclusion to effectively moderate entrepreneurship for negative outcomes in energy poverty: (i) are between 0.154 and 0.280 index for the full sample; (ii) is between 0.187 index for the rural sub-sample; (iii) are between 0.200 and 0.333 index for the male sample. (iv) Thresholds are not computed for the rural and female sub-samples because at least one estimated coefficient that is needed for the computation of such thresholds is not significant. Policy implications are discussed. This study has complemented the existing literature by assessing how financial inclusion can be employed to influence the nexus between entrepreneurship and poverty in Ghana. |
| Keywords: | Energy poverty; Financial inclusion; Consumption poverty; Education; Household income |
| JEL: | D03 D12 D14 I32 Q41 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/035&r=mfd |