Microfinance, the Role and Impact on Macroeconomic Indicators of the Country. Case study: Albania

Doçi, Esmeralda

doi:10.5901/mjss.2017.v8n1p161

Cited by 3 publications

(3 citation statements)

References 4 publications

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“…We recommend that, microfinance institutions should loan to improve consumption in the short run, while the long run goal should be to improve investment and other capital accumulation. Doçi (2017) analyzed empirically the relationship between the gross portfolio of MFIs and macroeconomic factors in Albania over a period of 1999 to 2014. Specifically, the study analyzed whether a country with high level of credit portfolio provided by micro financial institutions has low poverty and macroeconomic factors taken into analysis, considering the endogeneity of the gross portfolio of Micro Financial Institutions.…”

Section: Empirical Reviewmentioning

confidence: 99%

“…A total of 106 MFBs were subject of serious regulatory concern. Out of that number, 12 MFBs were rendering skeletal services, 4 were undergoing restructuring, 7 had voluntarily closed shop while the licenses of 83 others were revoked (Doçi, 2017). While there are many studies on the role of microfinance, most of the studies focused on microfinance and the performance of small and medium scale enterprises (Akani and Uzah, 2018; Andabai and Jessie, 2018; Asor, Essien and Ndiyo, 2016), this study examined the role of microfinance banks in economic development in Nigeria.…”

Section: Introductionmentioning

confidence: 99%

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Micro Financing and Economic Development: A Sectorial Microcredit Study from Nigeria

ZAAGHA¹

2021

jefms

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This study examined the effect of sectorial microcredit allocation on Nigeria economic development. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin from 1992-2019. Nigeria per capita income was proxied for dependent variables while microcredit to agricultural sector, mining and querying, manufacturing sector, real estate and construction and transport and communication were proxies for independent variables. The study employed descriptive statistics and multiple regression models to estimate the relationship that exists between sectorial microcredit allocation and economic development. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The study found that 59 percent variation on Nigeria per capita income can be traced to variation on microcredit allocation to the various sectors of the economy. microcredit to transport and communication have positive and no significant effect, microcredit to real estate and construction have negative but no significant effect, microcredit to manufacturing sector have negative and significant, microcredit to mining and querying have positive and significant effect while microcredit to agricultural sector have positive and significant effect on Nigeria per capita income. From the findings, the researcher concludes that microcredit allocation have significant effect on Nigeria economic development. It recommends that for re-introduction of the abolished compulsory sectorial lending operation and sectorial reforms to attract microcredit. Microfinance banks should be encouraged to increase their branches so as to reach out and provide loans to more clients in order to achieve greater investment purposes. Government should further encourage the activities of micro finance banks by creating enabling environment so that they can further support the growth of business enterprises in Nigeria.

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Section: Empirical Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Micro Financing and Economic Development: A Sectorial Microcredit Study from Nigeria

ZAAGHA¹

2021

jefms

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“…The study of Doci (2017) used GDP growth inflation and interest rates and in contrast found that macroeconomic factors indeed have significant impact on gross loan portfolio performance of MFIs in Albania. Tran (2017) study of macroeconomic context and growth of MFIs equally established a link between growth of GDP and gross loan portfolio of MFIs in Vietnam.…”

Section: Literature Reviewmentioning

confidence: 99%

Testing the Influence of Macroeconomic Environment on Microfinance Banks’ Liquidity in Nigeria: A Vector Autoregressive Approach

2019

RJFA

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Adequate level of liquidity is essential for microfinance banks to ensure sustainable provision of credit to less privileged members of the society that cannot access credit from conventional banking system. This study was therefore carried out to verify whether or not macroeconomic factors have impact on liquidity position of microfinance banks in Nigeria. To achieve the objective, vector autoregressive method has been adopted to analyze data on microfinance liquidity ratio, growth rate of real GDP, inflation rate and interest rate. The outcome of the study showed that the impact of macroeconomic factor on microfinance banks' liquidity is negligible and insignificant. The study concludes that the Nigerian macroeconomic environment has no influence on liquidity of microfinance banks. Nevertheless, the macroeconomic environment should always be closely monitored.

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Understanding Relevance of Business Environment for Financial Performance: The Case of Asian Non-Banking Microfinance Institutions

Farooq

Ahmad

Liaqat

et al. 2022

Vision: The Journal of Business Perspective

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Microfinance aims at providing productive loans to deprived segments of society that helps in poverty eradication. Existing studies ignore some essential factors of business environment, which can influence the performance of microfinance institutions. We have collected data from the Doing Business project of the World Bank and audited financial statements of 52 Asian non-banking microfinance institutions for the period of 2012–2016. This study has employed system method of moments (GMM) technique with xtabond2 command, and the findings of analyses reveal the significant impact of different business environmental factors such as getting credit, protecting minor investors and paying taxes on financial performance of selected institutions. These findings recommend that practitioners need to pay particular attention to the formulation of such policies that can help these institutions in coping better with their external business environment.

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Microfinance, the Role and Impact on Macroeconomic Indicators of the Country. Case study: Albania

Abstract: Microcredit or microfinance are one of the most important novelties on development policy in the last

Cited by 3 publications

References 4 publications

Micro Financing and Economic Development: A Sectorial Microcredit Study from Nigeria

Micro Financing and Economic Development: A Sectorial Microcredit Study from Nigeria

Testing the Influence of Macroeconomic Environment on Microfinance Banks’ Liquidity in Nigeria: A Vector Autoregressive Approach

Understanding Relevance of Business Environment for Financial Performance: The Case of Asian Non-Banking Microfinance Institutions

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