Is repeated borrowing better at improving MSMEs' performance and profitability? A PAMF-CI case study from cote d'Ivoire. Issue 1 (2nd January 2022)

• Record Type: Journal Article
• Authors: Uwingabiye, Gloria; Nouwoue, Guylaine
• Is Part Of: Journal of development effectiveness. Volume 14:Issue 1(2022)
• Page Start: 19
• Page End: 33
• Publication Date: 2022-01-02
• Subjects: Msmes -- repeated loan cycles -- profitability -- microcredit impact; Economic development -- Periodicals; Developing countries -- Economic conditions -- Periodicals; Economic development; Economic history; Developing countries; Periodicals; 338.91724
• DOI: 10.1080/19439342.2021.1937277
• Languages: English
• ISSNs: 1943-9342

Abstract

ABSTRACT: This paper investigates the cumulative effect of successive borrowing from Première Agency de Microfinance-Côte d'Ivoire (PAMF-CI) on MSMEs[i] in Côte d'Ivoire. It employs a non-experimental approach to compare established clients with new clients.After controlling for key observable characteristics of these MSMEs, the findings suggest that there are cumulative positive effects associated with longer programme participation, and graduation from first to second and subsequent larger loans is a strong determinant of business performance and business profitability. The results also indicate that men benefit more than women, with gender being the key factor driving the differential impact in this relationship.