A socio-economic study of the borrowing process: The case of microentrepreneurs in Jordan
AbstractThis paper investigates the socio-economic determinants of four stages of borrowing process of the Jordanian microfinance market. The equations and functions corresponding to the stages of the borrowing process are estimated using a sample of 474 microentrepreneurs. The main results are as follow: variables that reflect the repayment ability are the main determinants of credit rationing in the microfinance market; religious beliefs, social responsibilities, availability of local microfinance providers, application costs, level of knowledge about microfinance providers significantly affect the borrowing process of microentrepreneurs. Credit rationing is found to be a problem for some applicants, but not for the majority.
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Bibliographic InfoPaper provided by University of Sydney, School of Economics in its series Working Papers with number 7.
Date of creation: Aug 2004
Date of revision:
microfinance market; credit rationing; borrowing process; Jordan; limited dependent variable analysis;
Other versions of this item:
- Dilip Dutta & Ihab Magableh, 2006. "A socio-economic study of the borrowing process: the case of microentrepreneurs in Jordan," Applied Economics, Taylor & Francis Journals, vol. 38(14), pages 1627-1640.
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