Competition and microcredit interest rates: international evidence
<p>The limited number of existing papers that link competition among microfinance institutions (MFIs) and microcredit interest rates, provide inconclusive and counterintuitive results. This paper uses data from 1997 MFIs operating in 109 countries between the years 2003 and 2016 to construct t...
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2019
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| _version_ | 1864513568119980032 |
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| author | Moh’d Al-Azzam (14150100) |
| author2 | Christopher Parmeter (14150103) |
| author2_role | author |
| author_facet | Moh’d Al-Azzam (14150100) Christopher Parmeter (14150103) |
| author_role | author |
| dc.creator.none.fl_str_mv | Moh’d Al-Azzam (14150100) Christopher Parmeter (14150103) |
| dc.date.none.fl_str_mv | 2019-09-03T06:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1007/s00181-019-01766-6 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Competition_and_microcredit_interest_rates_international_evidence/21596928 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Economics Applied economics Human society Sociology Microfinance Competition Lerner Index Microcredit interest rates For-profit MFIs |
| dc.title.none.fl_str_mv | Competition and microcredit interest rates: international evidence |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p>The limited number of existing papers that link competition among microfinance institutions (MFIs) and microcredit interest rates, provide inconclusive and counterintuitive results. This paper uses data from 1997 MFIs operating in 109 countries between the years 2003 and 2016 to construct three measures of competition and evaluate their impacts on interest rates. These measures reflect three different aspects of competition: geographical expansion, market concentration, and the marginal pricing. While the results for market concentration are inconclusive, the results for both geographical expansion and marginal pricing show an economically strong impact of competition on interest rates. Specifically, regardless of whether an MFI is a for-profit or nonprofit, we find meaningful evidence that competition reduces interest rates. Our findings evince that lower interest rates are needed if the microfinance movement is to continue to be relied on as an effective means to alleviate poverty.</p><h2>Other Information</h2> <p> Published in: Empirical Economics<br> License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="http://dx.doi.org/10.1007/s00181-019-01766-6" target="_blank">http://dx.doi.org/10.1007/s00181-019-01766-6</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_b21e0c2df3370e60efbbb754d4e301ba |
| identifier_str_mv | 10.1007/s00181-019-01766-6 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/21596928 |
| publishDate | 2019 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Competition and microcredit interest rates: international evidenceMoh’d Al-Azzam (14150100)Christopher Parmeter (14150103)EconomicsApplied economicsHuman societySociologyMicrofinanceCompetitionLerner IndexMicrocredit interest ratesFor-profit MFIs<p>The limited number of existing papers that link competition among microfinance institutions (MFIs) and microcredit interest rates, provide inconclusive and counterintuitive results. This paper uses data from 1997 MFIs operating in 109 countries between the years 2003 and 2016 to construct three measures of competition and evaluate their impacts on interest rates. These measures reflect three different aspects of competition: geographical expansion, market concentration, and the marginal pricing. While the results for market concentration are inconclusive, the results for both geographical expansion and marginal pricing show an economically strong impact of competition on interest rates. Specifically, regardless of whether an MFI is a for-profit or nonprofit, we find meaningful evidence that competition reduces interest rates. Our findings evince that lower interest rates are needed if the microfinance movement is to continue to be relied on as an effective means to alleviate poverty.</p><h2>Other Information</h2> <p> Published in: Empirical Economics<br> License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="http://dx.doi.org/10.1007/s00181-019-01766-6" target="_blank">http://dx.doi.org/10.1007/s00181-019-01766-6</a></p>2019-09-03T06:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1007/s00181-019-01766-6https://figshare.com/articles/journal_contribution/Competition_and_microcredit_interest_rates_international_evidence/21596928CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/215969282019-09-03T06:00:00Z |
| spellingShingle | Competition and microcredit interest rates: international evidence Moh’d Al-Azzam (14150100) Economics Applied economics Human society Sociology Microfinance Competition Lerner Index Microcredit interest rates For-profit MFIs |
| status_str | publishedVersion |
| title | Competition and microcredit interest rates: international evidence |
| title_full | Competition and microcredit interest rates: international evidence |
| title_fullStr | Competition and microcredit interest rates: international evidence |
| title_full_unstemmed | Competition and microcredit interest rates: international evidence |
| title_short | Competition and microcredit interest rates: international evidence |
| title_sort | Competition and microcredit interest rates: international evidence |
| topic | Economics Applied economics Human society Sociology Microfinance Competition Lerner Index Microcredit interest rates For-profit MFIs |