The Open UniversitySkip to content
 

Competition and the performance of microfinance institutions

Assefa, Esubalew; Hermes, Niels and Meesters, Aljar (2013). Competition and the performance of microfinance institutions. Applied Financial Economics, 23(9) pp. 767–782.

DOI (Digital Object Identifier) Link: https://doi.org/10.1080/09603107.2012.754541
Google Scholar: Look up in Google Scholar

Abstract

This article examines the relationship between competition and the performance of Microfinance Institutions (MFIs). We measure competition by constructing a Lerner index. Next, we assess the association between increased competition among MFIs on the one hand and outreach and loan repayment performance of individual MFIs on the other. The empirical investigation is based on data from 362 MFIs in 73 countries for the period 1995–2008. Based on our analysis we do find a general trend of increased competition in microfinance during the last decade. Moreover, our econometric analysis provides evidence that competition among MFIs is negatively associated with their outreach and repayment performance.

Item Type: Journal Item
Copyright Holders: 2013 Taylor & Francis
ISSN: 1466-4305
Keywords: microfinance institutions; competition; outreach; loan repayment; Lerner index
Academic Unit/School: Faculty of Arts and Social Sciences (FASS) > Politics, Philosophy, Economics, Development, Geography > Economics
Faculty of Arts and Social Sciences (FASS) > Politics, Philosophy, Economics, Development, Geography
Faculty of Arts and Social Sciences (FASS)
Related URLs:
Item ID: 49220
Depositing User: Esubalew Assefa
Date Deposited: 25 Feb 2019 10:10
Last Modified: 29 Mar 2019 09:55
URI: http://oro.open.ac.uk/id/eprint/49220
Share this page:

Metrics

Altmetrics from Altmetric

Citations from Dimensions

Actions (login may be required)

Policies | Disclaimer

© The Open University   contact the OU