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Trends and Performance Effects of Competition In The Ethiopian Microfinance Sector


This Paper Analyses The Trend Of Competition In The Ethiopian Microfinance Sector. To Assess The Trend Of Competition, We Constructed A Lerner Index Measure Of Competition. It Then Examines The Relationship Between Competition Among Microfinance Institutions (Mfis) And Their Performance In Terms Of Outreach, Loan Repayment, Efficiency And Financial Performance. The Empirical Investigation Is Based On Data From 22 Mfis For The Period 2003-2009. The Microfinance Sector Has Witnessed Significant Growth During This Period. Based On The Measure Of Competition, We Do Find Lower Level Of Competition Among Mfis And A General Trend Of Falling Competition Over The Past Six Years. The Econometric Analysis Provides Evidence That Competition Among Mfis Is Negatively Associated With Various Measures Of Financial Performance, Loan Repayment And Efficiency. However, Increased Competition Is Found To Be Positively Associated With Outreach Of Mfis

Corporate Author: 
Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
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Cataloge Date: 
Broad Subject heading: 
Microfinance Institutions
Call Number: 
330.963 PRO 2012
Serial Key Title: 
Proceedings of the Ninth International Conference on the Ethiopian Economy
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Content type: 
Publication date: 
2013-06-27 23:12:00
Forum or Discussion date: 
2013-02-27 15:43:20
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
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