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The Influence of Geographical Coverage on the Microfinance Sustainability and Outreach in Northern Ghana

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  • Issahaku Salifu

Abstract

The study examined for statistically significant relationship between geographical coverage of microfinance institutions and sustainability and outreach from the view point of managers and operational staff in northern Ghana. Structured questionnaire was used in collecting data. The questionnaire was administered to a sample of 181 managers and operational staff of 18 microfinance institutions. The study used primary data. In selecting the respondents for this research paper, purposive and convenient sampling techniques were employed. The questionnaire was personally administered by the researcher. The study was conducted to ethical standards and respondents were made aware that participating in the study was voluntary. Data collected was analyzed using Spearman’s correlation and descriptive statistics. The research uncovered a statistically significant positive relationship between geographical coverage and sustainability and outreach in northern Ghana using Spearman’s correlation. In addition, the use of descriptive statistics showed that geographical coverage of microfinance institution influenced its sustainability and outreach with particular reference to the number of clients served, location of offices or branches, and scope of coverage. This study adds to the literature on geographical coverage and microfinance sustainability and outreach in the context of northern Ghana. This study is limited to only northern Ghana and not Ghana in its entirety.

Suggested Citation

  • Issahaku Salifu, 2020. "The Influence of Geographical Coverage on the Microfinance Sustainability and Outreach in Northern Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(2), pages 1-82, February.
    • Handle: RePEc:ibn:ijefaa:v:12:y:2020:i:2:p:82
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    References listed on IDEAS

    as
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    3. Shakil Quayes, 2012. "Depth of outreach and financial sustainability of microfinance institutions," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3421-3433, September.
    4. Madajewicz, Malgosia, 2011. "Joint liability versus individual liability in credit contracts," Journal of Economic Behavior & Organization, Elsevier, vol. 77(2), pages 107-123, February.
    5. Robert Cull & Asli Demirguç-Kunt & Jonathan Morduch, 2007. "Financial performance and outreach: a global analysis of leading microbanks," Economic Journal, Royal Economic Society, vol. 117(517), pages 107-133, February.
    6. repec:ebl:ecbull:v:9:y:2003:i:2:p:1-10 is not listed on IDEAS
    7. Valentina Hartarska & Denis Nadolnyak, 2007. "Do regulated microfinance institutions achieve better sustainability and outreach? Cross-country evidence," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1207-1222.
    8. Mira Nurmakhanova & Gavin Kretzschmar & Hassouna Fedhila, 2015. "Trade-off between financial sustainability and outreach of microfinance institutions," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 231-250, December.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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