Economies of Diversification in Microfinance: Evidence from Quantile Estimation on Panel Data

Emir Malikov, Valentina Hartarska () and Roy Mersland

MPRA Paper from University Library of Munich, Germany

Abstract: Prior studies of the diversification-driven cost savings from the joint provision of credit and deposits in microfinance usually ignore the multi-way heterogeneity across MFIs which vary substantially in size, business model, target clientele and operate in diverse environments. Using a quantile panel data model with correlated effects capable of accommodating multiple heterogeneity, we show that the typical measurement of economies of diversification at the mean provides an incomplete and distorted picture of their magnitude and prevalence in the industry. While we find statistically significant estimates, they are modest for most small-size MFIs but are quite substantial for large-scale institutions.

Keywords: cost; diversification; microfinance institutions; quantile regression (search for similar items in EconPapers)
JEL-codes: G15 G21 L33 O16 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ban, nep-eff and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/95935/1/MPRA_paper_95935.pdf original version (application/pdf)

Related works:
Journal Article: Economies of diversification in microfinance: Evidence from quantile estimation on panel data (2020)
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:pra:mprapa:95935

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().