Microfinance and gender inequality: cross-country evidence. Issue 20 (28th November 2017)

• Record Type: Journal Article
• Authors: Zhang, Quanda; Posso, Alberto
• Is Part Of: Applied economics letters. Volume 24:Issue 20(2017)
• Page Start: 1494
• Page End: 1498
• Publication Date: 2017-11-28
• Subjects: Microfinance -- financial inclusion -- gender inequality -- empowerment -- panel data evidence; G21 -- J16 -- C33; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2017.1287851
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: Microfinance enables poor women to engage in income-generating activities, which helps them become financially independent, strengthening their decision-making power within the household and society. Consequently, microfinance has the potential to reduce gender inequality (GI). Case-study evidence from across the developing world both supports and contradicts this hypothesis. We therefore revisit this issue using macroeconomic cross-country panel data for 64 developing economies over the period 2003–2014. We find that women's participation in microfinance is associated with a reduction in GI. However, regional interactions reveal that cultural factors are likely to influence the GI–microfinance nexus.