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The challenge of rural financial inclusion – evidence from microfinance

Tania López, Adalbert Winkler · 2017 · Applied Economics

Summary. Microfinance institutions serving rural borrowers face sustainability challenges that limit financial inclusion in rural areas. Analysis of 772 microfinance institutions from 2008–2013 shows that while rural lending doesn't directly harm sustainability, institutions with more rural borrowers struggle to achieve economies of scale and productivity gains. This structural disadvantage explains why rural financial inclusion progresses more slowly than urban inclusion.

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López, T., & Winkler, A.. (2017). The challenge of rural financial inclusion – evidence from microfinance. Applied Economics. https://doi.org/10.1080/00036846.2017.1368990

Details

DOI
10.1080/00036846.2017.1368990
Countries
Germany
Regions
Europe
Categories
funding, rural-data-and-definitions
Added
2026-04-28