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Economies Of Scope For Microfinance: Differences Across Output Measures

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  • Valentina Hartarska
  • Christopher F. Parmeter
  • Denis Nadolnyak
  • Beibei Zhu

Abstract

In banking, scope economies of mobilizing deposits and lending are often estimated, while consideration of the same measures for microfinance institutions (MFI) is still in its infancy. An open issue remains regarding what characterizes an output of an MFI. Moreover, depending on the output used, do estimated scope economies differ? We use a novel data set for over 800 MFI across more than 70 countries to estimate economies of scope. Our findings suggest that statistical differences arise between estimates of scope economies. However, our qualitative findings indicate that both of these measures provide similar overviews of the landscape of scope economies for MFI.

Suggested Citation

  • Valentina Hartarska & Christopher F. Parmeter & Denis Nadolnyak & Beibei Zhu, 2010. "Economies Of Scope For Microfinance: Differences Across Output Measures," Pacific Economic Review, Wiley Blackwell, vol. 15(4), pages 464-481, October.
    • Handle: RePEc:bla:pacecr:v:15:y:2010:i:4:p:464-481
    DOI: 10.1111/j.1468-0106.2010.00516.x
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    References listed on IDEAS

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    1. Valentina Hartarska & Roy Mersland & Denis Nadolnyak & Christopher Parmeter, 2013. "Governance and scope economies in microfinance institutions," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 4(1), pages 74-96.
    2. Moh’d Al-Azzam & Christopher Parmeter, 2021. "Competition and microcredit interest rates: international evidence," Empirical Economics, Springer, vol. 60(2), pages 829-868, February.
    3. Bailey, Rachel & Hartarska, Valentina, 2017. "Women's Property Rights and Outreach of Microfinance Institutions Targeting Women," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 253159, Southern Agricultural Economics Association.
    4. Delgado, Michael S. & Parmeter, Christopher F. & Hartarska, Valentina & Mersland, Roy, 2015. "Should all microfinance institutions mobilize microsavings? Evidence from economies of scope," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 48(1), pages 193-225.
    5. Malikov, Emir & Hartarska, Valentina & Mersland, Roy, 2020. "Economies of diversification in microfinance: Evidence from quantile estimation on panel data," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 34, pages 1-7.
    6. Hartarska, Valentina & Nadolnyak, Denis & Mersland, Roy, 2014. "Are Women Better Bankers to the Poor? Evidence from Rural Microfinance Institutions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 96(5), pages 1291-1306.
    7. Hartarska, Valentina & Shen, Xuan & Mersland, Roy, 2013. "Scale economies and input price elasticities in microfinance institutions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 37(1), pages 118-131.
    8. Malikov, Emir & Hartarska, Valentina, 2018. "Endogenous scope economies in microfinance institutions," Journal of Banking & Finance, Elsevier, vol. 93(C), pages 162-182.
    9. Sefa Awaworyi Churchill, 2020. "Microfinance financial sustainability and outreach: is there a trade-off?," Empirical Economics, Springer, vol. 59(3), pages 1329-1350, September.
    10. Knar Khachatryan & Vardan Baghdasaryan & Valentina Hartarska, 2018. "Is the model loans-plus-savings better for microfinance in ECA? A PSM comparison," Working Paper c5a69366-4231-479c-879d-c, European Microfinance Network.
    11. Bruno, Olivier & Khachatryan, Knar, 2020. "Compulsory versus voluntary savings as an incentive mechanism in microfinance programs," Journal of Behavioral and Experimental Finance, Elsevier, vol. 26(C).
    12. Mersland, Roy & Strøm, R. Øystein, 2014. "Measuring Microfinance Performance," EconStor Open Access Book Chapters, in: Microfinance Institutions: Financial and Social Performance, pages 12-30, ZBW - Leibniz Information Centre for Economics.
    13. Kaul, Sapna & Boyle, Kevin J. & Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2013. "What can we learn from benefit transfer errors? Evidence from 20 years of research on convergent validity," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 90-104.
    14. Anastasia Cozarenco & Valentina Hartarska & Ariane Szafarz, 2019. "Too Many Cooks Spoil the Broth: The Conflicting Impacts of Subsidies and Deposits on the Cost-Efficiency of Microfinance Institutions," Working Papers CEB 19-001, ULB -- Universite Libre de Bruxelles.
    15. Muneer Babu M., 2016. "Macroeconomic Determinants of Technological Change in Indian Microfinance Institutions," Global Business Review, International Management Institute, vol. 17(5), pages 1179-1195, October.
    16. Eline Auwera & Bert D’Espallier & Roy Mersland, 2024. "Achieving Double Bottom-Line Performance in Hybrid Organisations: A Machine-Learning Approach," Journal of Business Ethics, Springer, vol. 190(3), pages 625-647, March.

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