International Conference on Eurasian Economies
29-31 August 2016 – Kaposvár, HUNGARY
Paper detail
Paper ID : 1566
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Asst. Prof. Dr. Dastan Aseinov
Session : 1D Finans I
Effect of Efficiency on Interest Rate in Microfinance Systems of Some Transition Economies
Bazı Geçiş Ekonomisi Ülkelerinde Uygulanan Mikrofinans Sistemi Etkinliğinın Faiz Oranlarına Tesiri
- Assoc. Prof. Dr. Metin Bayrak (Kyrgyz-Turkish Manas University, Türkiye)
- Dr. Kadyrbek Sultakeev (Kyrgyz-Turkish Manas University, Kyrgyzstan)
- Asst. Prof. Dr. Dastan Aseinov (Kyrgyz-Turkish Manas University, Kyrgyzstan)
Abstract
Although the share of microfinance institutions in financial sector of Transition Economies are increasing, the level of interest rates charged by microfinance institutions are very high than normal bank interest rates. Because in these countries the main reasons of high interest rates are operational cost, funding costs, credit risk, inflation and target profit of MFIs. The main purpose of this paper is to analyze the effect of efficiency on interest rate in microfinance system of sampled transition economies. This study uses MIX data that runs from 2000 to 2014 for transition economies countries. The efficiency of microfinance institutions in sampled transition economies measured by applying Stochastic Frontier Approach. The impact of efficiency on interest rate will be analyzed using fixed effects and random effects panel data models.
JEL codes: D24, L25, M11
Bayrak, Metin, Sultakeev, Kadyrbek, Aseinov, Dastan (2016). "Effect of Efficiency on Interest Rate in Microfinance Systems of Some Transition Economies" in Proceedings of International Conference of Eurasian Economies 2016, pp.549-557, Kaposvár, HUNGARY.
DOI: https://doi.org/10.36880/C07.01566
