An impact analysis of microfinance in Bosnia and Herzegovina

Type Working Paper - William Davidson Institute Working Paper Number 915
Title An impact analysis of microfinance in Bosnia and Herzegovina
Author(s)
Publication (Day/Month/Year) 2007
URL http://linkinghub.elsevier.com/retrieve/pii/S0305750X08001800
Abstract
This paper applies the financing constraint approach to study whether microfinance institutions improved access to credit for microenterprises in Bosnia and Herzegovina. According to this approach, microenterprises with improved assess to credit rely less on internal funds for their investments. Thus, we compare investment sensitivity to internal funds of micorenterprises in municipalities with significant presence of MFIs to that of micorenterprises in municipalities with no (or limited) presence of MFIs using Living Standards Measurement Survey and MFI branch location data. Results indicate that MFIs\nalleviated microbusinesses’ financing constraint. This approach is applicable to evaluating\nmicrofinance impact in other countries\n

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