A cross-country analysis to investigate the true role of microfinance institutions in developed and developing economies

Abstract

It is perceived that the microfinance institutions (MFIs) served millions of poor people by providing them easy access to loans with better repayment rates. The purpose of this study is to conduct a cross-country comparison among three Asian developing countries (Bangladesh, Pakistan, and India) and two developed economies (UK and USA) to evaluate the effectiveness of their MFIs in serving low-income people. The microfinance data for six years from 2006 to 2011 are collected from authentic sources. The findings of the study reveal that Bangladesh and India are comparatively ahead of other nations in serving poor people by providing them microcredits.

Keywords:

• microfinance
• cross-country analysis
• role of microfinance