IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v23y2019i3p1309-1330.html
   My bibliography  Save this article

Is the model “loans‐plus‐savings” better for microfinance in Eastern Europe and Central Asia? A propensity score matching comparison

Author

Listed:
  • Knar Khachatryan
  • Vardan Baghdasaryan
  • Valentina Hartarska

Abstract

Microfinance institutions are gradually evolving into multiservice organizations offering not only loans but also savings, and other financial and nonfinancial services. We contribute to the literature aimed at identifying how combining credit with savings affects outreach and sustainability in microfinance institutions (MFIs). We apply the propensity score matching method as well as its augmented dose–response version to compare the performance of loans‐plus‐savings MFIs with that of lending‐only in a sample of 710 observations from Eastern Europe and Central Asia. Owing to our unique capital structure data, we control for the use of subsidized capital, which related work ignores while existing evidence points to tradeoffs between subsidies and savings. We find that financial performance and breadth of outreach are positively associated with savings mobilization, while the evidence on depth of outreach points to a possible mission drift.

Suggested Citation

  • Knar Khachatryan & Vardan Baghdasaryan & Valentina Hartarska, 2019. "Is the model “loans‐plus‐savings” better for microfinance in Eastern Europe and Central Asia? A propensity score matching comparison," Review of Development Economics, Wiley Blackwell, vol. 23(3), pages 1309-1330, August.
    • Handle: RePEc:bla:rdevec:v:23:y:2019:i:3:p:1309-1330
    DOI: 10.1111/rode.12589
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rode.12589
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rode.12589?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu, Huanyu & Ma, Wanglin & Vatsa, Puneet & Zheng, Hongyun, 2023. "Clean energy use and subjective and objective health outcomes in rural China," Energy Policy, Elsevier, vol. 183(C).
    2. Wanglin Ma & Puneet Vatsa & Hongyun Zheng & Yanzhi Guo, 2022. "Does online food shopping boost dietary diversity? Application of an endogenous switching model with a count outcome variable," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    3. Shrabanti Maity, 2023. "Financial inclusion also leads to social inclusion—myth or reality? Evidences from self-help groups led microfinance of Assam," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-22, December.
    4. Ma, Wanglin & Ma, Wanglin & Zheng, Hongyun, 2021. "Impacts of Cooking Fuel Choices on Subjective Well-Being: Insights from Rural China," 2021 Conference, August 17-31, 2021, Virtual 315149, International Association of Agricultural Economists.
    5. Yuying Liu & Rubin Chen & Yufan Chen & Tinglei Yu & Xinhong Fu, 2024. "Impact of the degree of agricultural green production technology adoption on income: evidence from Sichuan citrus growers," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    6. Diamanta Sojeva & Armand Krasniqi & Mejdi Bektashi, 2020. "Legal Regulation of Microfinance Institutions as NGOs Following the Judgment of the Constitutional Court," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 515-524.
    7. Ma, Wanglin & Vatsa, Puneet & Zheng, Hongyun, 2022. "Cooking fuel choices and subjective well-being in rural China: Implications for a complete energy transition," Energy Policy, Elsevier, vol. 165(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:23:y:2019:i:3:p:1309-1330. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.