Scope economies from rural and urban microfinance services

Valentina Hartarska, Jingfang Zhang, Denis A. Nadolnyak · 2023 · Southern Economic Journal

Summary. Microfinance institutions serving both rural and urban markets experience different cost outcomes depending on their business model. Loan-only MFIs gain cost advantages from diversification across markets, achieving 16.6% scope economies. However, savings-and-loan MFIs face 11.7% scope diseconomies, suggesting they perform better by specializing. Over time, loan-only MFIs improved at serving harder-to-reach clients while savings-and-loan MFIs reduced their cost disadvantages from diversification.

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Hartarska, V., Zhang, J., & Nadolnyak, D. A.. (2023). Scope economies from rural and urban microfinance services. Southern Economic Journal. https://doi.org/10.1002/soej.12630

@article{hartarska-2023-scope-economies-rural-urban-microfinance,
  title   = {Scope economies from rural and urban microfinance services},
  author  = {Valentina Hartarska and Jingfang Zhang and Denis A. Nadolnyak},
  journal = {Southern Economic Journal},
  year    = {2023},
  doi     = {10.1002/soej.12630},
  url     = {https://doi.org/10.1002/soej.12630}
}

TY  - JOUR
TI  - Scope economies from rural and urban microfinance services
AU  - Valentina Hartarska
AU  - Jingfang Zhang
AU  - Denis A. Nadolnyak
JO  - Southern Economic Journal
PY  - 2023
DO  - 10.1002/soej.12630
UR  - https://doi.org/10.1002/soej.12630
ER  -

Details

DOI: 10.1002/soej.12630
Countries: United States
Regions: North America
Categories: funding, regional-innovation-systems
Added: 2026-04-28