Author(s): Valentina Hartarska, Christopher F. Parmeter, and Denis Nadolnyak
Abstract:
Our findings indicate that policies designed to improve MFIs’ performance to expand their services should be based on regional, organizational, and characteristics of the environment in which MFIs operate. The analysis suggests that economies of scope are driven mostly by fixed cost sharing while we do not find cost complementarities in most regions and MFI types.
The plan of the paper is as follows. We first discuss the theoretical and econometric techniques needed to estimate scope economies. We then proceed to detail the MFI data which we use in this study. Next, the results from our econometric investigation are present while conclusions and direction for future research finish our paper.
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