Economics at your fingertips  

Microfinance Institution Performance: Does the Macroeconomy Matter?

Sefa Awaworyi Churchill, Jeffrey Korankye Danso and Elikem Nyatefe

Economic Papers, 2018, vol. 37, issue 4, 429-442

Abstract: The performance of Microfinance Institutions (MFIs) has been compared at various levels for the purpose of replications and policy formulations. However, the potential effects of the macroeconomy on MFI performance are often not considered. We propose that understanding the possible effects of country‐level factors on MFI performance can help provide a more accurate evaluation and explain where microfinance fits in the development process. Based on data collected on 1544 MFIs, merged with country‐level macroeconomic and macro‐institutional data, we examine the effects of the macroeconomy on MFI performance. The results suggest that high economic growth is associated with better MFI performance. However, other modes of economic development, including wage employment opportunities, appear to impede MFI financial performance.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0812-0439

Access Statistics for this article

Economic Papers is currently edited by Rachel Ong

More articles in Economic Papers from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2019-02-23
Handle: RePEc:bla:econpa:v:37:y:2018:i:4:p:429-442