The Effects of Religion on Development Efforts: Evidence from the Microfinance Industry and a Research Agenda

Roy Mersland, D’Espallier, Bert and Magne Supphellen

World Development, 2013, vol. 41, issue C, 145-156

Abstract: This study responds to the need for more empirical knowledge pertaining to the effect of religion on development efforts. We use data from the microfinance industry to study performance differences between Christian and secular Microfinance Institutions (MFIs). We find that Christian MFIs have significantly lower funding costs and consistently underperform in terms of financial profit indicators. Contrary to our hypotheses Christian MFIs are as efficient in assuring loan repayment and their average loan sizes are on par with those of their secular peers.

Keywords: religion; performance; efficiency; microfinance; development providers; MFIs (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:41:y:2013:i:c:p:145-156

DOI: 10.1016/j.worlddev.2012.05.030

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