Economies of Scope for Microfinance: Differences Across Output Measures

18 Pages Posted: 27 Sep 2010

See all articles by Valentina Hartarska

Valentina Hartarska

Auburn University - Department of Agricultural Economics and Rural Sociology; Auburn University - Department of Finance

Christopher F. Parmeter

Virginia Polytechnic Institute & State University

Denis A. Nadolnyak

Auburn University - Department of Agricultural Economics and Rural Sociology

Beibei Zhu

Independent

Abstract

In banking, scope economies of mobilizing deposits and lending are often estimated, while consideration of the same measures for microfinance institutions (MFI) is still in its infancy. An open issue remains regarding what characterizes an output of an MFI. Moreover, depending on the output used, do estimated scope economies differ? We use a novel data set for over 800 MFI across more than 70 countries to estimate economies of scope. Our findings suggest that statistical differences arise between estimates of scope economies. However, our qualitative findings indicate that both of these measures provide similar overviews of the landscape of scope economies for MFI.

Suggested Citation

Hartarska, Valentina and Parmeter, Christopher F. and Nadolnyak, Denis A. and Zhu, Beibei, Economies of Scope for Microfinance: Differences Across Output Measures. Pacific Economic Review, Vol. 15, Issue 4, pp. 464-481, October 2010. Available at SSRN: https://ssrn.com/abstract=1682271 or http://dx.doi.org/10.1111/j.1468-0106.2010.00516.x

Valentina Hartarska

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36849
United States

Auburn University - Department of Finance ( email )

Auburn, AL 36849
United States

Christopher F. Parmeter

Virginia Polytechnic Institute & State University ( email )

Blacksburg, VA 24061
United States

Denis A. Nadolnyak

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36830
United States

Beibei Zhu

Independent ( email )

No Address Available

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