Increased Competition among Microfinance Institutions and its effect on Outreach, Financial Performance and Efficiency: Recent Cross-country Evidence
2013 (English)Conference paper, Presentation (Other academic)
In recent years the growing competition amongst the microfinance institutions (MFIs), has been blamed for the ‘repayment crisis’ in the microfinance industry. This paper is a comprehensive investigation of the impact of competition on the MFIs’ financial performance, outreach, repayment and efficiency. Using instrumental variables (IV) estimations to account for the endogeneity issues, the analysis is based on the global Microfinance Information Exchange (MIX) database. Preliminary results suggest that increased competition leads to lower efficiency but does not have an impact on MFIs’ financial performance, its outreach or repayment.
Place, publisher, year, edition, pages
IdentifiersURN: urn:nbn:se:uu:diva-204686OAI: oai:DiVA.org:uu-204686DiVA: diva2:639639
Third European Research Conference on Microfinance in Kristiansand, Norway, 10-12 June 2013