Social and Behavioral Sciences Commons^™

The Relationship Between Microfinance Bank And Economic Growth In Nigeria, Muhammad-Bashir Owolabi Yusuf, Ridwan Olabisi Yusuff, Daud Ishola Jimoh

Arab Economic and Business Journal

The goal of this study was to investigate how Nigeria's economy and microfinance banks are related, using time series data from 1992 to 2021. The relationship was assessed using the ARDL model. Short-term negative relationship exists between Microfinance Bank Asset and Economic growth. Specifically, the results indicate that a rise in the assets of microfinance banks (MFBA) will slow Nigeria's economic expansion. Economic growth in Nigeria is considerable and favorably correlated with microfinance banks loans and advances. Finally, it was clear that there is a long-run equilibrium link between economic growth, microfinance banks' assets and their loans and advances.

Leveling Up Financial Literacy: Evidence From Game-Based Intervention With Aspiration Treatment Amongst Rural Women In India, Akash Shaji

Master's Theses

In India, rural women exhibit notably low financial literacy levels, necessitating effective and scalable educational interventions. Our randomized controlled trial evaluated a novel approach, combining game-based financial literacy education with a video documentary-based aspirations intervention, targeting women in self-help groups in Karnataka. The study included 348 participants and employed an ANCOVA model adjusted for clustering to analyze the effects. The results demonstrate significant improvements in financial literacy and aspirations, particularly when interventions are combined. The game-based intervention alone significantly enhanced digital literacy, financial confidence, and behavioral indices such as agency, pathways, and aspirations. The aspirations intervention also independently affected financial …

Towards An Institutional Aesthetic Of Women’S Entrepreneurship: A Political Economy Perspective, Melissa Langworthy

Arab Economic and Business Journal

This article presents a feminist constructivist political economy perspective on the role of women’s enterprise development in modern times. Through establishing women’s enterprise as an aesthetic of good institutions rooted in the microcredit movement of the late twentieth century but with expanded resurgence into the global North in the aftermath of the 2008 financial crisis, I illustrate how female (micro)enterprise programs afforded moral legitimacy to international organizations, NGOs, and later corporations, financial institutions, and states in ways that downplayed individual and systemic empowerment.

A Study On Bangladesh's Grameen Bank And The Ready-Made Garment Industry: The Effects Of Rising Industrialization On The Reliance Of Microfinance, Elaine Yang

Scripps Senior Theses

Microfinance institutions offered a solution to borrowing to the ultra-poor through a group lending scheme where social capital drove repayment rates. In Bangladesh, the Grameen Bank was globally recognized as a successful microfinance institution, increasing financial literacy and mobility to the ultra-poor. Tangentially, the ready-made garment industry boomed in some districts with a Grameen Bank presence, while other districts were not impacted at all. Using a difference-in-difference regression model and focusing on the Grameen Bank districts before and after their exposure to the RMG industry on the number of branches, branch members, outstanding loan amount, and zone membership percentage of …

Understanding Financial Inclusion: A Comparative Analysis Of Financial Mechanisms In Uganda, Amari Huang

CMC Senior Theses

Financial inclusion is a critical means of empowering individuals to improve their own lives, and Uganda provides an excellent case study for examining various financial mechanisms in a developing country context. This thesis investigates four such mechanisms: formal banks, microfinance institutions, mobile money, and contribution clubs. The analysis is conducted using five criteria to evaluate their level of inclusion: (1) quantitative coverage, (2) standard of living, (3) gender, (4) education, and (5) social capital. The findings of this research suggest that the examined financial institutions can be seen as steppingstones, with each leading to the next, from contribution clubs to …

Does Microcredit Reduce Poverty? An Empirical Exploration In India, Aneel Karnani, Seema Sahai

Markets, Globalization & Development Review

Microcredit has grown dramatically over the last few decades and its supporters have made extravagant promises about its potential impact on reducing poverty. However, much recent research has shown that microcredit has no significant impact on reducing poverty. In this exploratory study we interview 205 clients of for-profit microcredit to better understand the causes of why microcredit has not lived up to its promise. We find the basic problem is that the lending policies of the microcredit organizations are designed to lower the costs and risks, and hence increase the profits of the organization, and are not responsive to the …

Daung Well By Daung Good, Leon Qiu, Singapore Management University

Perspectives@SMU

Leon Qiu started microfinance lending startup Daung Capital to help the unbanked in Myanmar. Can he adequately help the farmers there?

When Economic And Political Interests Collide: The Cases Of Defense Procurement And Microfinance In India, Mackenzie Owens

Politics and International Relations Research Papers

India is a growing democracy with an abundant population that seeks economic development; India is a democracy in an ever more important, strategic location. It is essential to better understand India, its politics, and its policies as geopolitical tensions rise in our world. India will be explored via a political economy approach through three sections in this paper: (1) The Political System of India; (2) India’s Trade Policy toward Defense Procurement; (3) The Microfinance Crisis of 2010. India looks to develop its domestic industries, grow investment, while defending its interests and sovereignty.

Conducting Field Work With Microfinance Programs’ Participants In A Non-Western Setting: A Reflexive Account, Mohammad Shahjahan Chowdhury

The Qualitative Report

While volumes of procedural guidelines are available on how to conduct fieldwork, in practice a researcher encounters various challenges and dilemmas in the field. This paper presents a holistic view of the puzzles this researcher encountered in gaining access, negotiating positionality, application of the pre-determined methodology, and ensuring ethics during his fieldwork with microfinance program participants in a non-Western setting. This paper contributes to the fieldwork literature by enhancing a researcher’s understanding of the unanticipated challenges.

The Microfinance Experiment: An Evaluation Of Programs And Effectiveness In St. Louis, Maxwell Miller

Honors Scholar Theses

Widespread poverty remains a reality for many in both developed and developing countries. Policymakers, charitable organizations, and entrepreneurs have introduced diverse strategies to provide individuals and communities opportunities to rise from poverty. One such method is microfinance, a system developed by Muhammad Yunus in the early 1970s to provide small loans and financial services to borrowers too impoverished or otherwise lacking in credibility or collateral to be considered by traditional means of credit.

Since its inception, microfinance has spread among other countries to mixed success. While many researchers claim microfinance has proven to be an effective tool to combat poverty, …

Extension-Led Demonstration: Grameen Microfinance Methods And Capital Access For Low-Income Female Entrepreneurs, Mark A. Edelman

The Journal of Extension

A nonprofit community development financial institution and Extension collaborated to conduct a demonstration project to evaluate efficacy of Grameen peer-group microfinance methodology in addressing barriers faced by low-income women entrepreneurs in a small metro area. Program performance metrics achieved by 284 culturally diverse, low-income entrepreneurs (almost all women) over 5 years included a program loan repayment rate of 99%, increased average client income, bank savings accumulation, and increased opportunities for improved credit scores. Client survey responses indicated program methods developed confidence and skills in finances, leadership, and teamwork. Extension professionals may play various roles in such endeavors.

Neoliberalism, Race And Empowerment: A Study Of Microenterprise Programs In Toronto And Los Angeles, Julie N. Young

Electronic Thesis and Dissertation Repository

This dissertation focuses on microenterprise in Toronto and Los Angeles. Two related research objectives are pursued in this dissertation. The first and overarching question concerns empowerment. 1) To what extent do microfinance and microenterprise programs empower their clients? The second broad theme concerns neoliberalism. How is the experience of empowerment shaped by neoliberalism? To gain further insight, I consider the following questions. 2) What are the objectives, intended outcomes and structures of microenterprise programs? 3) Who are the key actors in the space and are there any patterns in relation to race, gender and class? 4) What role does structural …

Banking On Her: The Effects Of Microfinance On Women’S Autonomy In Developing Economies, Zena Pare

Mahurin Honors College Capstone Experience/Thesis Projects

Once applauded as a way to empower the world’s poorest, and in particular benefit women, the practice of microfinance is now perceived with a much more cautious and nuanced lens. Some perspectives state that microfinance improves women’s lives and uplifts communities, while others claim that it increases over-indebtedness and does not provide a viable path to escape poverty. In order to determine if microfinance is an effective use of resources to empower women, this paper analyzes the relationship between women’s autonomy and microfinance to provide further insight into its proposed positive and negative effects. Using ordinary least squares regression analysis, …

The Impact Of Microfinance On Women Empowerment In The Case Of Vietnam, Long Bui Thanh

Doctoral

In recent years, most microfinance programs have focused on gender issues with significant support given to poor female clients with the goal of facilitating their access to capital. An interesting fact to be considered is that women are regarded as wonderful clients, as they appear to engage in a more efficient manner in the saving process and the repayment of microloans when compared to men. Based on existing studies, researchers suggest that women are also more responsible regarding the management of finances in the context of poor families (Aggarwal et al., 2015; D'Espallier et al., 2011; Mayoux, 2005).

Understanding Struggles And Triumphs Of Widows In Central Nigeria: A Path To Communication And Economic Empowerment, Meredith Annette Garrison

Theses and Dissertations--Communication

One in ten African women age 15 or older are widows. Approximately 8 million widows live in Nigeria with many living in extreme poverty. Throughout the nation, widows are subjected to physical and psychological harm from their families and communities following the deaths of their husbands. Women are marginalized across Nigeria, but widowed women often experience ostracization and oppression that leads to poverty. Most widows rely on informal business and petty trading to survive but these ventures typically only bring in less than a $1 a day for a family. This dissertation critically examined the situation of widows in a …

The Role Of Microfinance Workers In Financialization: Negotiating The Meaning Of Development In China, Xue Ma

Theses and Dissertations

Microfinance is an attempt to alleviate poverty through offering collateral-free small loans to poor borrowers, especially women in developing countries or rural areas. Though it is indeed an actual economic activity, usually engaged in through some type of bank, there is much that is informal and context-bound in these transactions, making microfinance a kind of “social business.” While the impact of microfinance on women borrowers has been discussed many times, only a few studies have looked at the significance of the other members of the interaction: the microfinance workers, who are instrumental intermediaries between the women-borrowers and the microfinance institutions …

Methodological Dilemma In Microfinance Research: Applicability Of A Qualitative Case Study Design, Shahjahan Chowdhury, Faisal Ahmmed, Md. Ismail Hossain

The Qualitative Report

This paper sheds light on the methodological dilemma in microfinance research and examines the feasibility of conducting a qualitative case study. Microfinance research is dominated by quantitative impact studies. However, the issues of process and implementation are critical to make an impact. The paper argues that a qualitative case study method can be used as a supplement or an alternative to quantitative methodology, because it is context-specific and naturally enquires research problem. The in-depth and in-detail inquiry make the findings more robust, and readers can understand the meaning holistically by reading stories and quotes. The case study can be used …

Economic Performance Of Shgs In Dharwad And Belgaum Districts Of North Karnataka In India - A Perspective Of Microfinance, Fazalath Hussain R.

International Review of Business and Economics

Microfinance has become one of the powerful tool to strengthen the economy by empowering third tier group and helps to uplift the group belongs to chronic and below poverty line, specifically Microfinance through the SHGs turns the accountable group of women’s towards monetary productivity as well as reasoned contributing in economic development by addition of their part in Per capita Income and Gross Domestic Product of Indian scale. After 1990s, Self Help Groups empower the women through different dimensions in varied sectors such as agriculture, farming, fisheries, horticulture, dairying, handicraft, tailoring, fashion and designing, small businesses and other entrepreneurial innovative …

Essays In Development Economics, Zachary Rodriguez

Graduate Theses, Dissertations, and Problem Reports

My dissertation focuses on several fields of study within economics. The common lens through which I ask all my questions is development economics. I employ health and public economics to aide in the interpretation and discussion of my analyses. Separately, my chapters explore issues related positive spillovers from overcompetition in contests, demand for financial services among low-income households, and the empowerment of women through access to guaranteed employment. Collectively, my dissertation offers evidence and insight regarding how we analyze and improve development initiatives that aim to change the lives of people who are poor or ill.

Determinantes De La Demanda Del Microcrédito En Colombia, Juan Carlos Rocha Roa

Economía

El microcrédito ha evolucionado progresivamente dentro del mercado financiero colombiano durante los últimos diez años, dando a la población de menores recursos y que no cuenta con historial crediticio ni garantías financieras la posibilidad de acceder a créditos de bajo valor, generando un proceso de inclusión financiera dentro del país, los microcréditos han tenido como fin el consumo, el emprendimiento y los procesos productivos para las familias y empresas. El aumento en la oferta y la demanda de estos créditos ha generado nuevos retos para los bancos cooperativas y ONG’S que buscan mitigar los riesgos operativos, comerciales y de control, …

Microfinance In Latin America: Poverty Alleviation And The Impact Of Institutional Mimicry, Lindsay Jouben

Graduate Theses, Dissertations, and Problem Reports

Microfinance has become a program of choice in the international development community. The World Bank has promoted microfinance programs under the idea that poverty alleviation can be accomplished by mainly providing credit. [1] As such, these policies are often replicated throughout the developing world. This replication is done through international organizations adopting a standard of best practices for the microfinance field. Best practices consist of a complex set of standard by which all banks must adhere if they receive funding from the World Bank or International Monetary Fund. These best practices, following neoliberal economics, lay out how microfinance should operate …

Obstacles To Accessing Pro-Poor Microcredit Programs In China: Evidence From Penggan Village, Guizhou, Deborah Shu Yi Tan, Track Tze Tuan Tan, Shao Tong Ling, John A. Donaldson

Research Collection School of Social Sciences

Why do poor farmers not take up microcredit loans, even when the terms are designed to be pro-poor? Fieldwork in a village in China’s Guizhou province revealed a puzzle: although the county government had designed a loan program that was intended to be unusually pro-poor, only three of the 349 eligible households had successfully applied. This article analyzes three potential hypotheses: farmer failure (risk aversion or financial illiteracy), market failure (lack of viable or stable market opportunities), and institutional failure (structural or institutional barriers precluding taking up loans). Based on evidence from intensive interviews, we reject the first hypothesis, and …

Do Policy Frameworks Affect Microfinance Participation In Kenya?, Matthew Reed

Senior Honors Projects, 2010-2019

The following paper explores the effectiveness of microfinance policy on the registered level of participation in Kenya. The research is conducted through the lens of Acemoglu and Robinson’s view of deep institutional issues restraining policy from its intended reform. Specifically, the paper looks at the effectiveness in increasing the total number of borrowers after Kenya’s National Microfinance Act of 2006 in regard to property right protection issues within the country. Ultimately, the research reinforces the idea that institutional issues, both political and economic, are a severe handicap to microfinance within a developing country.

Women's Empowerment By Group Sewing Training: A Microfinance Study In El Salvador, Sharleen Andrews

Walden Dissertations and Doctoral Studies

This case study explored the lived experiences of 8 participants in a microfinance sewing program in El Salvador. Numerous studies focused on empowering women by employing microfinance projects or programs in many countries; however, a lack of empirical data exists regarding Salvadoran women's perceptions about how a sewing program with teamwork affects women's empowerment. The purpose of this case study was to understand the women's personal stories, their obstacles as well as any factors they saw as empowering them. Guided by a constructionist framework, a sample of 8 participants: 5 who were sewing students and 3 who were employees, who …

Effects Of Agricultural Loans In Developing Countries – Benin Case Study, Nicaise S. M. Sagbo

Theses and Dissertations--Agricultural Economics

Limited access to financial services is known as a major constraint to agricultural development (FAO, 2002). Farmers need liquidity to face agricultural expenses throughout the production cycle but mainly at the beginning. Mainstream financial institutions are reluctant to serve the agricultural sector for several reasons. First, they consider the sector to be highly risky with low performance. Also, agricultural activities depend on the weather, they take place in remote rural areas, and commodities prices are volatile. All these aspects make it hard for standard banks to reach their profit goals when lending to farmers. Since microfinance was conceived, it has …

Microfinance, Msmes And The Macro Economy: Evidence From India, Monica Casabona

Honors College Theses

Much of prior literature on the relationship between microfinance and the macro-economy has focused on the effect of the latter in determining the success of microfinance institutions (MFIs). However, the microfinance industry has been underserved in studies evaluating microfinance as a legitimate contributor toward macro-economic growth. Researching this connection would provide a clearer direction for policymakers to support microfinance, and the institutions that foster such activities. This paper investigates the hypothesis that microfinance is not only important to the people at the bottom of the socio-economic pyramid, but for the overall health of a national economy. We explore different mechanisms …

The New Financial Framework For The Cuban Non-State Sector, Pavel Vidal, P.V. Viswanath

Faculty Working Papers

A cornerstone of the current Cuban economic model reforms is its opening to the non-state small-scale sector. Using the results of a survey of non-state businesses, we look at the provision of financial services to the small- and medium-sized enterprises in the non-state sector from two perspectives: first, the nature of the new credit regulations and bank policies and how they accomplish the evaluation of credit to a hitherto non-existent sector; and second, how these small business clients view their relationship with their lender state banks. We look at Cuba from the perspective of a socialist economy in transition and …

The Impact Of Microfinance On Poverty Reduction In Egypt: An Empirical Study, Hala Elhadidi

Business Administration

Microfinance has become a critical tool in credit markets for poverty reduction and socioeconomic development. Yet its impact is still questioned and varies from one country to another and from urban to rural areas. This article examines the role of Egyptian microfinance on household income. A cross-sectional survey interviewed 780 established and new clients in Greater Cairo and rural areas in Egypt. The stratified random method was used to collect the data from urban and rural districts. The findings, using multinomial logistics, reveal that microfinance had a positive impact on the household income of women borrowers who spent three years …

Microfinance And The Decision To Invest In Children’S Education, P.V. Viswanath

Faculty Working Papers

Although one of the primary objectives of microfinance has been the reduction of poverty through the provision of credit for income-generating purposes, evidence of its impact on poverty has been mixed. Even if there is no direct impact of microfinance, there may be an indirect positive impact through the effect of microcredit availability on families’ decisions to invest in their children’s education. In this paper, I describe a study undertaken to gauge the impact of microcredit availability on education expenditures for children of clients of a South Indian microfinance institution. I first look at some determinants of the demand for …

Client Protection Regulations For Microfinance Institutions In Ghana, Kenya, And Tanzania, Hanna Carlson

Oswald Research and Creativity Competition

This paper examines the financial sectors of Ghana, Kenya and Tanzania in relation to the regulation of microfinance institutions, specifically looking into client protection policies. The first section introduces the topic of microfinance in Sub-Saharan Africa, and the impact it has on the financial sector. A frame of reference is created by a brief introduction of the financial and regulatory climate in each of the three countries. Following this introduction, regression analyses demonstrate the impact of client protection policies on the performance of microfinance institutions in Ghana, Kenya, and Tanzania.