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The density of microfinance institutions and multiple borrowing in Ghana: Are rural borrowers vulnerable?

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  • Ewura‐Adwoa Ewusie
  • Samuel Kobina Annim
  • William Brafu‐Insaidoo

Abstract

This primal study investigates the extent of multiple borrowing in Ghana and explores the relationship between the density of microfinance institutions (MFIs) and multiple borrowing. Further analyses examine the susceptibility of rural borrowers, and the influence of individual MFI categories. The incidence of multiple borrowing in Ghana is 35%. Although an increase in MFI density is less likely to engender multiple borrowing, rural clients have a propensity to overlap and are also sensitive to different institutional features. The study contributes vital empirical evidence of MFI expansion on multiple borrowing and has wider implications for institutional sustainability and clients' economic livelihoods.

Suggested Citation

  • Ewura‐Adwoa Ewusie & Samuel Kobina Annim & William Brafu‐Insaidoo, 2021. "The density of microfinance institutions and multiple borrowing in Ghana: Are rural borrowers vulnerable?," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(8), pages 1217-1237, November.
    • Handle: RePEc:wly:jintdv:v:33:y:2021:i:8:p:1217-1237
    DOI: 10.1002/jid.3551
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    Cited by:

    1. Minhaj Mahmud & Yasuyuki Sawada & Mari Tanaka, 2022. "Microfinance competition and multiple borrowing: Evidence using panel data from Bangladesh," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 1164-1188, May.
    2. Md Aslam Mia, 2024. "Loyalty of rural microfinance borrowers: International evidence," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 67-94, January.

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