Pauvreté et microfinance dans l’espace de la cedeao: un cluster macroéconomique appliqué

Dioum, Sokhna Bousso (2024): Pauvreté et microfinance dans l’espace de la cedeao: un cluster macroéconomique appliqué.

Abstract

Problems of access to finance in developing countries can be decisive in generating poverty traps and persistent income inequalities. Unlike traditional finance which excluded vulnerable populations from participating in financial activities, microfinance institutions have made it easier for the poor to access financial services. This study applies the quantile technique on panel data to assess the macroeconomic effects of microfinance services on poverty in West African countries. Over the period [2000 – 2019], our estimation results reveal that the performance of microfinance institutions reduces on the one hand the number of people living below the national poverty line and accelerates the increase in the rate of economic growth, on the other hand. In other words, microfinance institutions remain the appropriate tools to significantly combat poverty and raise the level of economic development in West African countries. Also, a regularization mechanism must be developed in the Community in order to minimize income inequality which is a potential source of increasing poverty.

• Item Type: MPRA Paper
• English Title: Poverty and microfinance in the ecowas region: an applied macroeconomic cluster
• Language: French
• Keywords: Poverty, Microfinance institution, Economic development, Income inequality
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development

References

Abdullah, A.-M., Sazali, A. W., & Abu Bakar, S. (2015). Investigating the effect of microcredit on hardcore poor household income in Peninsular Malaysia. Kasertsart Journal of Social Sciences, 1(36), 544–553.

Adeyemi, T. O. (2010). Principals’ leadership styles and teachers’ job performance in senior

Ahlin, Christian and Neville Jiang. 2008. “Can Micro-Credit Bring Development?” Journal of Development Economics, 86(1): 1-21.

Akudugu, M. A. (2011). Rural banks' financial capital and livelihoods development of women farmers in Ghana. Journal of Enterprising Communities: People and Places in the Global Economy.

Amha, W. (2004). Managing growth of microfinance institutions (MFIs): Balancing sustainability and reaching large number of clients in Ethiopia. Ethiopian Journal of Economics, 13(2), 61-101.

Anjulo, D. D., & Hawassa, E. (2014). the role of microfinance institutions in accessing credit and poverty reduction in rural ethiopia: in the case of OMO micro finance institution in damot gale woreda. wolaita zone.

Asongu, S., Soumtang Bime, V., & Edoh, O. (2021). Financial institutions, poverty and severity of poverty in Sub-Saharan Africa. European Xtramile Centre of African Studies WP/21/081.

Bangoura, L., Mbow, M. K., Lessoua, A., & Diaw, D. (2016). Impact of Microfinance on Poverty and Inequality A Heterogeneous Panel Causality Analysis. Revue d'économie politique, 126(5), 789-818.

Barboza, G., & Trejos, S. (2009). Micro credit in Chiapas, México: Poverty reduction through group lending. Journal of Business Ethics, 88(2), 283-299. Bein, M. A., & Idewele, I. O. The Impact of Microfinance on poverty reduction and Economic development in Nigeria.

Bénicourt, E. (2001). Poverty According to the UNDP and the World Bank. Etudes rurales, 159160(3), 35-53.

Buchinsky, M. (1994). Changes in the US wage structure 1963-1987: Application of quantile regression. Econometrica: Journal of the Econometric Society, 405-458.

Buera, Francisco J., Joseph P. Kaboski, and Yongseok Shin. 2012. “The Macroeconomics of Microfinance.” National Bureau of Economic Research Working Paper 17905.

Castaneda Aguilar, R. A., Cojocaru, A., Howton, E. L. A., Lakner, C., Nguyen, M. C., Schoch, M., & Yonzan, N. (2020). Poverty and shared prosperity 2020: reversals of fortune.

Chowdhury, M. J. A., Ghosh, D., & Wright, R. E. (2005). The impact of micro-credit on poverty: evidence from Bangladesh. Progress in Development studies, 5(4), 298-309.

Couchoro, M. K., & Gbandi, T. (2018). Microfinance et pauvreté multidimensionnelle dans la Communauté économique des États de l’Afrique de l’Ouest (CEDEAO): une perspective macro-économique. Mondes en développement, (1), 147-164.

D’Haultfoeuille, X., Givord, P., & Boutin, X. (2013). The Environmental Effect of Green Taxation.

Donou-Adonsou, C. F., & Sylwester, K. (2015). Macroeconomic effects of microfinance: Evidence from developing countries. J. Econ, 41(1), 21-35.

Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied economics, 38(10), 1091-1110. Galor, O., & Zeira, J. (1993). Income distribution and macroeconomics. The review of economic studies, 60(1), 35-52.

Hermes, N. (2014). Does microfinance affect income inequality?. Applied Economics, 46(9), 1021- 1034.

Imai, K. S., Gaiha, R., Thapa, G., & Annim, S. K. (2012). Microfinance and poverty—a macro perspective. World development, 40(8), 1675-1689.

Khalaf, L. S., & Saqfalhait, N. I. (2019). The Effect of Microfinance Institutions Activities on Economic Growth in Arab Countries. Academy of Accounting and Financial Studies Journal.

Khandker, S. R. (2005). Microfinance and poverty: Evidence using panel data from Bangladesh. The world bank economic review, 19(2), 263-286.

Koenker, R., & Hallock, K. F. (2001). Quantile regression. Journal of economic perspectives, 15(4), 143-156.

Kpodar, K. R. (2004). Le développement financier et la problématique de la réduction de la pauvreté. Documento de Trabajo, 200408.

Kuznets, S. (1955). International differences in capital formation and financing. In Capital formation and economic growth (pp. 19-111). Princeton University Press.

Maksudova, N. (2010). Macroeconomics of Microfinance: How Do the Channels Work?. CERGE-EI Working Paper Series, (423).

Miled, K., & Rejeb, J. (2014). Microfinance et réduction de la pauvreté: Une approche macroéconomique. International Journal of Business & Economic Strategy, 5, 1-8. Morduch, J., & Haley, B. (2002). Analysis of the effects of microfinance on poverty reduction (Vol. 1014, p.7). New York: NYU Wagner working paper.

Padonou, E. A., Kassa, B., Assogbadjo, A. E., Chakeredza, S., Babatoundé, B., & Glèlè Kakaï, R.(2013). Differences in germination capacity and seedling growth between different seed morphotypes of Afzelia africana Sm. in Benin (West Africa). The Journal of Horticultural Science and Biotechnology, 88(6), 679-684

Peprah, J. A. (2012). Access to micro-credit well-being among women entrepreneurs in the Mfantsiman Municipality of Ghana. International Journal of Finance & Banking Studies (2147-4486), 1(1), 1-14.

Raihan, S., Osmani, S. R., & Khalily, M. B. (2017). The macro impact of microfinance in Bangladesh: A CGE analysis. Economic Modelling, 62, 1-15.

Rosenberg, J. A. (2009). Poverty, guardianship, and the vulnerable elderly: Human narrative and secondary schools in Ondo State, Nigeria. Journal of Education Administration and Policy Studies, 2(6), 83-91.

Sohn, Wook & Ume, Laila. (2019). The Impact of Microfinance on Poverty Alleviation: The Case of Pakistan. Journal of Asian Development. 5. 16. 10.5296/jad.v5i3.15165. statistical patterns in a snapshot of adult guardianship cases in New York City. Geo. J. on Poverty L. & Pol'y, 16, 315.

Toh, Y. (2013). The Impact of Microfinance on Poverty Alleviation in Cameroon: A Case of the Fako Chapter of CamCCUL Ltd. Available at SSRN 2760433.

Urga, A., & Shete, M. Impact of Microfinance on Poverty Reduction: The Case of Gasha Microfinance Institution.

Wampfler, B., Munoz, J., Lapenu, C., Doligez, F., & Kessari, M. E. (2008). Pour un partenariat entre commerce équitable et microfinance rurale. Renforcer l’accès aux services financiers des organisations de producteurs et des familles associées au commerce équitable. In 3. Fair Trade International Symposium (FTIS), Montpellier, FRA, 2008-05-14-2008-05-16.

Wijayasena, A., Karunasinghe, U., Semasinghe, P., & Bandara, M. (2016). Effectiveness of Microcredit in Reducing Household Poverty Level: An Empirical Study Based on Hambantota Women’s Development Federation.