EconPapers    
Economics at your fingertips  
 

Contribution of microfinance to economic growth: Transmission channel and the ways to test it

Nargiza Alimukhamedova ()

Business and Economic Horizons (BEH), 2014, vol. 9, issue 4, 27-43

Abstract: Since its birth in 1970s microfinance has been growing rapidly with the aim to lift people out of poverty and promote economic growth. Its role and importance has been amplified amidst the global financial crisis when trust into formal banking is shaken. Despite global recognition and popularity of microfinance there is mixed evidence of its net benefits and very limited work on its contribution to financial intermediation and economic growth. This paper first, identifies and discusses possible transmission channels for microfinance and second, establishes the choice of appropriate methodology for robust empirical test. Adapted for panel data the Arellano-Bond (1991) technique allows for the Granger-Causality type test to reveal the direction of causality and overcome endogeneity issue. The main purpose of the estimation is to check whether microfinance matters for financial sector development and economic growth.

Keywords: Microfinance; microcredit; economic growth; financial intermediation; dynamic panel Journal: Business and Economic Horizons (BEH) (search for similar items in EconPapers)
JEL-codes: G15 G21 O16 O57 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
https://academicpublishingplatforms.com/downloads/ ... _growth_pp.27-43.pdf (application/pdf)
http://academicpublishingplatforms.com/article.php ... mber=12&article=1862 (text/html)

Related works:
Journal Article: Contribution of microfinance to economic growth: Transmission channel and the ways to test it (2013) Downloads
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: https://EconPapers.repec.org/RePEc:pdc:jrnbeh:v:9:y:2014:i:4:p:27-43

Access Statistics for this article

Business and Economic Horizons (BEH) is currently edited by Orifjan Namozov, Ph.D.

More articles in Business and Economic Horizons (BEH) from Prague Development Center Contact information at EDIRC.
Bibliographic data for series maintained by Jaroslav Holecek ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-19
Handle: RePEc:pdc:jrnbeh:v:9:y:2014:i:4:p:27-43