IDEAS home Printed from https://ideas.repec.org/p/urv/wpaper/2072-247802.html
   My bibliography  Save this paper

Microfinance and credit rationing in Ghana: Does the microfinance type matter?

Author

Listed:
  • Díaz Serrano, Lluís
  • Sackey, Frank G.

Abstract

This study sets out to examine the extent to which access to credit and credit rationing are influenced by the microfinance type based on the major factors determining micro, small and medium enterprises’ access to credit from microfinance institutions in the era of financial liberalization. The data for the study were gleaned from the microfinance institutions’ credit and loan records consisting of the various pieces of information provided by the borrowers in the application process. Our results are puzzling and show that credit rationing is not influenced by the microfinance types but by the individual microfinance institutions. Keywords: Microfinance, Ghana, Credit Rationing. JEL codes: G21

Suggested Citation

  • Díaz Serrano, Lluís & Sackey, Frank G., 2015. "Microfinance and credit rationing in Ghana: Does the microfinance type matter?," Working Papers 2072/247802, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/247802
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/2072/247802
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leonardo Becchetti & Melody Garcia & Giovanni Trovato, 2009. "Credit rationing and credit view: empirical evidence from loan data," CEIS Research Paper 144, Tor Vergata University, CEIS, revised 30 Sep 2009.
    2. Akoten, John E & Sawada, Yasuyuki & Otsuka, Keijiro, 2006. "The Determinants of Credit Access and Its Impacts on Micro and Small Enterprises: The Case of Garment Producers in Kenya," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 927-944, July.
    3. Agier, Isabelle & Guérin, Isabelle & Szafarz, Ariane, 2012. "Child gender and parental borrowing: Evidence from India," Economics Letters, Elsevier, vol. 115(3), pages 363-365.
    4. Sofianos, George & Wachtel, Paul & Melnik, Arie, 1990. "Loan commitments and monetary policy," Journal of Banking & Finance, Elsevier, vol. 14(4), pages 677-689, October.
    5. Cuong H. Nguyen, 2007. "Determinants of Credit Participation and Its Impact on Household Consumption: Evidence From Rural Vietnam," CERT Discussion Papers 0703, Centre for Economic Reform and Transformation, Heriot Watt University.
    6. Xiangping Jia & Franz Heidhues & Manfred Zeller, 2010. "Credit rationing of rural households in China," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(1), pages 37-54, May.
    7. Zeller, Manfred, 1994. "Determinants of credit rationing: A study of informal lenders and formal credit groups in Madagascar," World Development, Elsevier, vol. 22(12), pages 1895-1907, December.
    8. Garikipati, Supriya, 2008. "The Impact of Lending to Women on Household Vulnerability and Women's Empowerment: Evidence from India," World Development, Elsevier, vol. 36(12), pages 2620-2642, December.
    9. Daniel Hardy & Paul Holden & Vassili Prokopenko, 2003. "Microfinance institutions and public policy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(3), pages 147-158.
    10. Claudio A. Piga & Gianfranco Atzeni, 2007. "R&D Investment, Credit Rationing And Sample Selection," Bulletin of Economic Research, Wiley Blackwell, vol. 59(2), pages 149-178, April.
    11. Boris F. Blumberg & Wilko A. Letterie, 2008. "Business Starters and Credit Rationing," Small Business Economics, Springer, vol. 30(2), pages 187-200, February.
    12. Mr. Rodolphe Blavy & Mr. Anupam Basu & Mr. Murat  Yulek, 2004. "Microfinance in Africa: Experience and Lessons From Selected African Countries," IMF Working Papers 2004/174, International Monetary Fund.
    13. Rosemary Atieno, 2001. "Formal and informal institutions’ lending policies and access to credit by small-scale enterprises in Kenya: An empirical assessment," Working Papers 111, African Economic Research Consortium, Research Department.
    14. Beatriz Armendáriz & Marc Labie (ed.), 2011. "The Handbook of Microfinance," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 7645, January.
    15. Bester, Helmut, 1985. "Screening vs. Rationing in Credit Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 75(4), pages 850-855, September.
    16. Dwight M. Jaffee & Thomas Russell, 1976. "Imperfect Information, Uncertainty, and Credit Rationing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 651-666.
    17. John G. Riley, 1987. "An Introduction to the Theory of Contests," UCLA Economics Working Papers 469, UCLA Department of Economics.
    18. Joseph P. Kaboski & Robert M. Townsend, 2005. "Policies and Impact: An Analysis of Village-Level Microfinance Institutions," Journal of the European Economic Association, MIT Press, vol. 3(1), pages 1-50, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diaz-Serrano, Luis & Sackey, Frank Gyimah, 2015. "Is Rationing in the Microfinance Sector Determined by the Microfinance Type? Evidence from Ghana," IZA Discussion Papers 8999, Institute of Labor Economics (IZA).
    2. Parker, Simon C, 2002. "Do Banks Ration Credit to New Enterprises? And Should Governments Intervene? President's Lecture Delivered at the Annual General Meeting of the Scottish Economic Society 4-5 September 2001," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(2), pages 162-195, May.
    3. Raccanello, Kristiano, 2016. "Do Microenterprises’ size and status matter to access informal finance?./ ¿El tamaño y el registro de las microempresas permite el acceso a los mercados financieros informales?," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 12(23), pages 123-152, Segundo s.
    4. Naranchimeg Mijid & Caroline Elliott, 2015. "Gender differences in Type 1 credit rationing of small businesses in the US," Cogent Economics & Finance, Taylor & Francis Journals, vol. 3(1), pages 1021553-102, December.
    5. Marcello Pagnini & Paola Rossi & Valerio Vacca & Lucia dalla Pellegrina & Serena Frazzoni & Zeno Rotondi & Andrea Vezzulli, 2017. "Access to Credit for Small Innovative Businesses," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(3), pages 411-458, November.
    6. Drakos, Konstantinos & Giannakopoulos, Nicholas, 2011. "On the determinants of credit rationing: Firm-level evidence from transition countries," Journal of International Money and Finance, Elsevier, vol. 30(8), pages 1773-1790.
    7. Togba, Edith Leadaut, 2012. "Microfinance and households access to credit: Evidence from Côte d’Ivoire," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 473-486.
    8. Janvier D. Nkurunziza, 2005. "Reputation and Credit without Collateral in Africa`s Formal Banking," Economics Series Working Papers WPS/2005-02, University of Oxford, Department of Economics.
    9. Cowling, Marc, 2010. "The role of loan guarantee schemes in alleviating credit rationing in the UK," Journal of Financial Stability, Elsevier, vol. 6(1), pages 36-44, April.
    10. Tran, Minh Chau & Gan, Christopher & Hu, Baiding, 2014. "Credit Constraints and Impact on Farm Household Welfare: Evidence from Vietnam’s North Central Coast region," 2014 Conference, August 28-29, 2014, Nelson, New Zealand 187495, New Zealand Agricultural and Resource Economics Society.
    11. Kislat, Carmen & Menkhoff, Lukas & Neuberger, Doris, 2013. "The use of collateral in formal and informal lending," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79765, Verein für Socialpolitik / German Economic Association.
    12. Bime, Mary-Juliet & Mbanasor, Jude Anayochukwu, 2011. "Analysis of rural credit market performance in north west region, Cameroon," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 3(3), pages 1-6, September.
    13. Menkhoff, Lukas & Rungruxsirivorn, Ornsiri, 2009. "Village Funds in the Rural Credit Market of Thailand," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 45, Verein für Socialpolitik, Research Committee Development Economics.
    14. Andrés Murcia Pabón, 2007. "Determinantes del acceso al crédito de los hogares colombianos," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 25(55), pages 40-83, December.
    15. Robert E. Carpenter & Bruce C. Petersen, 2002. "Capital Market Imperfections, High-Tech Investment, and New Equity Financing," Economic Journal, Royal Economic Society, vol. 112(477), pages 54-72, February.
    16. Supriya Garikipati & Isabelle Agier & Isabelle Guérin & Ariane Szafarz, 2017. "The Cost of Empowerment: Multiple Sources of Women’s Debt in Rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 53(5), pages 700-722, May.
    17. Ana María Iregui-Bohórquez & Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo & Ana María Tribín-Uribe, 2018. "Crédito formal e informal de los hogares en Colombia," Investigación Conjunta-Joint Research, in: María José Roa García & Diana Mejía (ed.), Decisiones financieras de los hogares e inclusión financiera: evidencia para América Latina y el Caribe, edition 1, volume 1, chapter 5, pages 133-166, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    18. Maria Luisa Mancusi & Andrea Vezzulli, 2014. "R&D AND CREDIT RATIONING IN SMEs," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1153-1172, July.
    19. Kjenstad, Einar C. & Su, Xunhua & Zhang, Li, 2015. "Credit rationing by loan size: A synthesized model," The Quarterly Review of Economics and Finance, Elsevier, vol. 55(C), pages 20-27.
    20. Mark Gertler, 1988. "Financial structure and aggregate economic activity: an overview," Proceedings, Federal Reserve Bank of Cleveland, pages 559-596.

    More about this item

    Keywords

    Microfinances; Crèdit; Ghana; 336 - Finances. Banca. Moneda. Borsa;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:urv:wpaper:2072/247802. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ariadna Casals (email available below). General contact details of provider: https://edirc.repec.org/data/deurves.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.