Munich Personal RePEc Archive

Microfinance institutional growth: How driven forces impact their financial integration?

Sandra, Kendo and Chicot, Eboue (2016): Microfinance institutional growth: How driven forces impact their financial integration? Forthcoming in: Economic Development and Culture Change No. Under review

[img]
Preview
PDF
MPRA_paper_70225.pdf

Download (854kB) | Preview

Abstract

This article analyses the growth of microfinance by examining how some driven forces heighten more or less their financial integration. Three main driven forces identify: agency costs, financial development and trade-off in microfinance. The author samples 542 microfinance institutions. Quantile regression applies to analyze difference effects. The results first reveal that high financial development can easily improve financial integration of microfinance, by expanding rate of external investors. Nevertheless, as viewed, high financial integration can also reach where financial development is low. Then, there is inverse link between agency costs and financial integration of MFIs. At last outreach performs better than financial performance in improving their financial integration. There is no mission drift across quantiles and status. Microfinance institutions that plan to increase their average loans with an increase of their number of active borrowers perform better in a financial integration.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.