Do Microloan Officers Want to Lend to the Less Advantaged? Evidence from a Choice Experiment
AbstractThe mission of microfinance is generally perceived as compensation for the failure of the mainstream financial institutions to deliver access to finance to the poor. Microloan officers have significant influence on microloans allocation as they contact loan applicants and process information inside microfinance institutions (MFIs). We conduct a choice experiment with microloan officers in Burundi to determine which clients are preferred for microloan allocation and whether the less advantaged are indeed targeted. The results suggest that the allocation of microloans is slightly in favor of the less advantaged, whereas the main determinant is the quality of the applicants' business projects. Somewhat surprisingly, we find only small differences in the determinants of the targeted groups between non-profit and profit-seeking MFIs.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 492.
Length: 42 pages
Date of creation: 28 Feb 2011
Date of revision:
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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
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microfinance; choice experiment; microloan officers; non-profit organizations;
Other versions of this item:
- Sagamba, MoÏse & Shchetinin, Oleg & Yusupov, Nurmukhammad, 2013. "Do Microloan Officers Want to Lend to the Less Advantaged? Evidence from a Choice Experiment," World Development, Elsevier, vol. 42(C), pages 182-198.
- C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-03-12 (All new papers)
- NEP-BAN-2011-03-12 (Banking)
- NEP-HME-2011-03-12 (Heterodox Microeconomics)
- NEP-MFD-2011-03-12 (Microfinance)
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