A socio-economic study of the borrowing process: The case of microentrepreneurs in Jordan

Dilip Dutta and Ihab Magableh

No 7, Working Papers from University of Sydney, School of Economics

Abstract: This paper investigates the socio-economic determinants of four stages of borrowing process of the Jordanian microfinance market. The equations and functions corresponding to the stages of the borrowing process are estimated using a sample of 474 microentrepreneurs. The main results are as follow: variables that reflect the repayment ability are the main determinants of credit rationing in the microfinance market; religious beliefs, social responsibilities, availability of local microfinance providers, application costs, level of knowledge about microfinance providers significantly affect the borrowing process of microentrepreneurs. Credit rationing is found to be a problem for some applicants, but not for the majority.

Keywords: microfinance market; credit rationing; borrowing process; Jordan; limited dependent variable analysis (search for similar items in EconPapers)
Date: 2004-08
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Citations: View citations in EconPapers (3)

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Journal Article: A socio-economic study of the borrowing process: the case of microentrepreneurs in Jordan (2006)
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