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Differences in the interest rates of microfinance institutions in some emerging markets economies: An HLM approach/Diferencias en las tasas de interés entre instituciones financieras de algunas economías emergentes: un enfoque HLM

Author

Listed:
  • Adriana Ramírez Rocha

    (Tecnológico de Monterrey)

  • L. Arturo Bernal Ponce

    (Tecnológico de Monterrey)

  • Mauricio Cervantes Zepeda

    (Tecnológico de Monterrey)

Abstract

In this study, we analyzed the differences in the interest rates of microfinance institutions (MFIs) of some countries in Latin America, Africa, Eastern Europe and Asia. We found that the operating expenses are essential drivers of these interest rates. We also found that operating expenses, average loan per borrower, real growth GDP, and government effectiveness, are key factors that explain differences in interest rates. We use apply Hierarchical Linear Modeling (HLM) to analyze these differences.

Suggested Citation

  • Adriana Ramírez Rocha & L. Arturo Bernal Ponce & Mauricio Cervantes Zepeda, 2019. "Differences in the interest rates of microfinance institutions in some emerging markets economies: An HLM approach/Diferencias en las tasas de interés entre instituciones financieras de algunas econo," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 34(2), pages 275-307.
    • Handle: RePEc:emx:esteco:v:34:y:2019:i:2:p:275-307
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    References listed on IDEAS

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    More about this item

    Keywords

    microfinance institutions; IMFs interest rates; hierarchical linear modeling; government effectiveness; emerging markets economies;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis

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