A New Index of the Business Environment for Microfinance

This paper describes a new index of the quality of the business environment for microfinance institutions (the Global Microscope on the Microfinance Business Environment). Regressions are used to validate the index by linking it and its sub-components to microfinance outcomes. The main findings are...

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Bibliographic Details
Main Authors:	Cull, Robert, Navajas, Sergio, Nishida, Ippei, Zeiler, Renate
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2015
Subjects:	microfinance business environment developing countries
Online Access:	http://hdl.handle.net/10986/22706

id	okr-10986-22706
recordtype	oai_dc
spelling	okr-10986-227062021-04-23T14:04:10Z A New Index of the Business Environment for Microfinance Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate microfinance business environment developing countries This paper describes a new index of the quality of the business environment for microfinance institutions (the Global Microscope on the Microfinance Business Environment). Regressions are used to validate the index by linking it and its sub-components to microfinance outcomes. The main findings are that the components of the index related to the supporting institutional framework are strongly linked to measures of microfinance penetration (such as microfinance borrowers as a share of total population). Components related to the framework for regulation and supervision are more strongly linked to outcomes at the MFI level, including loan portfolio quality, financial self-sufficiency, average loan size, and the share of lending to women. Many, but not all, of these relationships are robust to using instrumental variables estimation in which a country’s general stringency with respect to financial regulation is used as an instrument for the index and its components. 2015-09-29T18:52:33Z 2015-09-29T18:52:33Z 2015-01-14 Journal Article World Development 0305-750X http://hdl.handle.net/10986/22706 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research Publications & Research :: Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	microfinance business environment developing countries
spellingShingle	microfinance business environment developing countries Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate A New Index of the Business Environment for Microfinance
description	This paper describes a new index of the quality of the business environment for microfinance institutions (the Global Microscope on the Microfinance Business Environment). Regressions are used to validate the index by linking it and its sub-components to microfinance outcomes. The main findings are that the components of the index related to the supporting institutional framework are strongly linked to measures of microfinance penetration (such as microfinance borrowers as a share of total population). Components related to the framework for regulation and supervision are more strongly linked to outcomes at the MFI level, including loan portfolio quality, financial self-sufficiency, average loan size, and the share of lending to women. Many, but not all, of these relationships are robust to using instrumental variables estimation in which a country’s general stringency with respect to financial regulation is used as an instrument for the index and its components.
format	Journal Article
author	Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate
author_facet	Cull, Robert Navajas, Sergio Nishida, Ippei Zeiler, Renate
author_sort	Cull, Robert
title	A New Index of the Business Environment for Microfinance
title_short	A New Index of the Business Environment for Microfinance
title_full	A New Index of the Business Environment for Microfinance
title_fullStr	A New Index of the Business Environment for Microfinance
title_full_unstemmed	A New Index of the Business Environment for Microfinance
title_sort	new index of the business environment for microfinance
publisher	Elsevier
publishDate	2015
url	http://hdl.handle.net/10986/22706
_version_	1764451826781913088

A New Index of the Business Environment for Microfinance

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