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Do Microloan Officers Want to Lend to the Less Advantaged? Evidence from a Choice Experiment

  • Sagamba, Moïse


    (Université Lumiére de Bujumbura and Université de Bretagne Occidentale)

  • Shchetinin, Oleg


    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Yusupov, Nurmukhammad


    (Chaire Banque Populaire, Audencia Nantes School of Management)

The 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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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 492.

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Length: 42 pages
Date of creation: 28 Feb 2011
Date of revision:
Handle: RePEc:hhs:gunwpe:0492
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
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  2. Mersland, Roy & Strøm, R. Øystein, 2010. "Microfinance Mission Drift?," World Development, Elsevier, vol. 38(1), pages 28-36, January.
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  4. Cécile Aubert & Elisabeth Sadoulet & Alain De Janvry, 2009. "Designing Credit Agent Incentives to Prevent Mission Drift in Pro-Poor Microfinance Institutions," Post-Print hal-00382221, HAL.
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  7. Pierre-Guillaume Méon & Roy Mersland & Ariane Szafarz & Marc Labie, 2011. "Discrimination by Microcredit Officers:Theory and Evidence on Disability in Uganda," DULBEA Working Papers 11-06, ULB -- Universite Libre de Bruxelles.
  8. John List & Steven Levitt, 2009. "Field experiments in economics: The past, the present, and the future," Artefactual Field Experiments 00079, The Field Experiments Website.
  9. Patrick Francois & Michael Vlassopoulos, 2008. "Pro-social Motivation and the Delivery of Social Services," CESifo Economic Studies, CESifo, vol. 54(1), pages 22-54, March.
  10. D'Espallier, Bert & Guérin, Isabelle & Mersland, Roy, 2011. "Women and Repayment in Microfinance: A Global Analysis," World Development, Elsevier, vol. 39(5), pages 758-772, May.
  11. Carlsson, Fredrik & Martinsson, Peter, 2001. "Do Hypothetical and Actual Marginal Willingness to Pay Differ in Choice Experiments?: Application to the Valuation of the Environment," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 179-192, March.
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  14. repec:feb:artefa:0087 is not listed on IDEAS
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