Financial Sustainability and Poverty Outreach: The Case of Microfinance Institutions in Eastern Europe and Central Asia
| Autor: | Ganna Sheremenko, Cesar L. Escalante, Wojciech J. Florkowski |
|---|---|
| Rok vydání: | 2017 |
| Předmět: |
Sustainable development
Economic growth Microfinance Poverty 050204 development studies media_common.quotation_subject 05 social sciences Geography Planning and Development Development State ownership Interest rate law.invention Outreach law 0502 economics and business Development economics Gender and development Economics 050207 economics International development media_common |
| Zdroj: | The European Journal of Development Research. 29:230-245 |
| ISSN: | 1743-9728 0957-8811 |
| DOI: | 10.1057/ejdr.2016.12 |
| Popis: | The collapse of state ownership, following the dissolution of the Soviet Union, launched a new era of self-employment and small businesses in need of financing services throughout the region. This research investigates whether the traditional microfinance lending paradigm that adopts a two-pronged mission of financial sustainability and poverty outreach applies to young commercialized microfinance institutions in Eastern Europe and Central Asia. The analysis employs a residual standard error approach to ordinary least squares and 2-stage least squares estimation, as well as recursive model estimation. The results suggest that financial sustainability can be adversely affected when interest rates exceed a threshold of 80 per cent and an individualized instead of group lending approach is adopted. However, poverty outreach is improved by servicing small loans to more borrowers, particularly women. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
Full text from SpringerLink