Sustainability and depth of outreach: Evidence from microfinance institutions in sub‐Saharan Africa
Sefa Awaworyi Churchill
Development Policy Review, 2018, vol. 36, issue S2, O676-O695
The feasibility of microfinance institutions (MFIs) to expand outreach to the poorest while remaining financially sustainable has long been debated. Using data from 206 MFIs in 33 African countries, we adopt the three‐stage least square technique to assess whether a trade‐off exists between sustainability and outreach depth. Our results confirm the existence of a trade‐off. The evidence also supports ongoing subsidies for MFIs with the aim of encouraging outreach. In addition, we examine whether there is an inflection point beyond which higher interest rates reduce profitability for MFIs. We find no evidence of a threshold beyond which profitability is reduced.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:devpol:v:36:y:2018:i:s2:p:o676-o695
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0950-6764
Access Statistics for this article
Development Policy Review is currently edited by David Booth
More articles in Development Policy Review from Overseas Development Institute Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().