An Empirical Study on the Impact of Microfinance Institutions on Development

Jian Xiao, Fordham University

Abstract

The paper studies four main questions about Microfinance institutions. First, it tests whether Microfinance Institutions Granger causes local economic growth by applying Granger causality tests. Furthermore, the research applies linear regression to further test whether Microfinance institutions positive impact local economic. Second, it tests whether Microfinance institutions could pass high transaction cost to borrowers. Third, it tests whether Microfinance institutions are financially resilient to economic downturns. Forth it tests whether Microfinance institution’ face trade-offs between financial performances and outreach. The paper implemented various hypothesis testing techniques such as Hausman test on model validation and Durbin-Watson test on variables’ multicollinearity.^

Subject Area

Economics

Recommended Citation

Xiao, Jian, "An Empirical Study on the Impact of Microfinance Institutions on Development" (2017). ETD Collection for Fordham University. AAI10280424.
https://fordham.bepress.com/dissertations/AAI10280424

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