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2019 | nr 35 | 40--62
Tytuł artykułu

The Effect of Microfinance on Income Inequality: Perspective of Developing Countries

Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
Aim/purpose - Studying the impact of microfinance on income inequality from a macro- -economic perspective. Design/methodology/approach - Cross-sectional regression analysis is used to measure the effect of microfinance on the Gini index in a sample of 30 developing countries from across Africa, Asia, Latin America, and Europe. A set of control variables are added to the model including: inflation, educational attainment, democracy, population growth, percentage of arable land to strengthen the model's reliability. Findings - Results indicate that neither a positive nor a negative impact of microfinance on Gini index could be significantly proved for the sample countries. Research implications/limitations - Due to lack of data availability, research is conducted on a small sample of 30 countries. Therefore, to obtain more generalisable results, it is recommended for future research to use a larger sample. Originality/value/contribution - Microfinance is becoming a focal issue in alleviating poverty and inequality, and this paper's main contribution is that it explores this matter from a macro-economic perspective by looking at the holistic impact of microcredit on a sample of developing countries. Hence, the paper provides further investigation and suggestions for a better implementation of microfinance policies.(original abstract)
Rocznik
Numer
Strony
40--62
Opis fizyczny
Twórcy
  • German University in Cairo, Egypt
  • German University in Cairo, Egypt
Bibliografia
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Typ dokumentu
Bibliografia
Identyfikatory
Identyfikator YADDA
bwmeta1.element.ekon-element-000171544767

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