Economic governance of MFIs:Inside the black box
This paper investigates a relationship between economic governance and the dual objectives of microfinance institutions (MFIs): poverty reduction and financial viability. Using an unbalanced panel of 531 MFIs, the important role of other institutions, such as country-level business registry departments, in facilitating targeting of poor clients is illuminated. Comparing the estimates of Hausman-Taylor and Fixed Effects Vector Decomposition allows us to scrutinise and at least partially correct the effects of both time invariant and slow changing endogenous variables. We find that credit information availability and lesser time in securing property enhances the chances of MFIs in achieving their poverty reduction objective. Product diversification, leading to economies of scope, also enables MFIs to reach poor clients. On the basis of the above, it is imperative for government and development partners to channel their efforts towards provision of an enabling atmosphere that will enhance the achievement of microfinance social objectives.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: Humanities Bridgeford Street, Oxford Road,Manchester, M13 9PL|
Phone: +44(0)7717 881567
Web page: http://www.gdi.manchester.ac.uk/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bwp:bwppap:13810. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rowena Harding)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.