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An Impact Analysis of Microfinance in Bosnia and Herzegovina

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  • Hartarska, Valentina
  • Nadolnyak, Denis
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    Abstract

    Summary This paper applies the financing constraints approach to study whether microfinance institutions improved access to credit for microenterprises in Bosnia and Herzegovina. According to this approach, microenterprises with improved access to credit rely less on internal funds for their investments. Thus, we compare investment sensitivity to internal funds of microenterprises in municipalities with significant presence of MFIs to that of microenterprises in municipalities with no (or limited) presence of MFIs using Living Standards Measurement Survey and MFI branch location data. Results indicate that MFIs alleviated microbusinesses' financing constraints. This approach is applicable to evaluating microfinance impact in other countries.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 36 (2008)
    Issue (Month): 12 (December)
    Pages: 2605-2619

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    Handle: RePEc:eee:wdevel:v:36:y:2008:i:12:p:2605-2619

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: microfinance impact study microfinance institutions financing constraints Eastern Europe Bosnia and Herzegovina;

    References

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    Cited by:
    1. Filipe Silva & Carlos Carreira, 2009. "No Deep Pockets: Some stylized results on firms' financial constraints," GEMF Working Papers 2009-06, GEMF - Faculdade de Economia, Universidade de Coimbra.
    2. Hartarska, Valentina M. & Nadolnyak, Denis A., 2012. "Financing Constraints and Access to Credit in Post Crisis Environment: Evidence from New Farmers in Alabama," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119799, Southern Agricultural Economics Association.
    3. Searing, Elizabeth A.M. & Rios-Avila, Fernando & Lecy, Jesse D., 2013. "The impact of psychological trauma on wages in post-conflict Bosnia and Herzegovina," Social Science & Medicine, Elsevier, vol. 96(C), pages 165-173.

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