Do microfinance institutions fulfil their promise? Evidence from cross-country data

The concept of microfinance promises poverty reduction and economic growth. We empirically challenge this economic and social promise in an attempt to prove its fulfilment. Our multivariate regressions of economic development variables such as per capita gross national income based on PPP converted to international dollars (GNI per capita PPP), GDP growth, as well as gross capital formation and labour participation rate against specific microfinance institutions’ (MFI) variables show that the success and performance of MFIs significantly influence economic development. Microfinance directly influences economic growth through the value that MFI performance adds to purchasing power. An indirect impact comes from an improvement in capital accumulation and employment rates. These insights are valuable as the interdependencies between microfinance and economic development that this article verifies offer new and progressive insights into purposeful action that can be taken to stimulate economic development and growth. Targeted development programmes as well as socially responsible investments can be applied in developing economies in order to strengthen their growth and alleviate poverty.     

Feminist Ecological Economics and Sustainability

Synopsis New developments in feminist ecological economics and ecofeminist economics are contributing to the search for theories and policy approaches to move economies toward sustainability. This paper summarizes work by ecofeminists and feminist ecological economists which is relevant to the sustainability challenge and its implications for the discipline of economics. Both democracy and lower material throughputs are generally seen as basic principles of economic sustainability. Feminist theorists and feminist ecological economists offer many important insights into the conundrum of how to make a democratic and equity-enhancing transition to an economy based on less material throughput. These flow from feminist research on unpaid work and caring labor, provisioning, development, valuation, social reproduction, non-monetized exchange relationships, local economies, redistribution, citizenship, equity-enhancing political institutions, and labor time, as well as creative modeling approaches and activism-based theorizing.      

Social Control of Corporate Power: Comment

Economic activity takes place within an institutional framework. The economy, like society, represents a complex of institutions, ranging from the smallest, such as the family, to the largest and most comprehensive, the state (Chavance 2009). Institutional economics offers a broad perspective that brings forward the concept of gender, since gender is a fundamental organizing principle of institutions (Jacobsen 2003). A focus on social provisioning, typical for both feminist as well as institutional economists, leads to a broader understanding of economic activity. This broader approach includes activities like caring and care labor that cannot be entirely understood in terms of individual choices. In this paper, I explore the relationships between care and the economy from the perspective of neoclassical, institutional, and feminist economic theory. Economic theories are a basis for public policies that have a major impact on people’s lives. I argue that changing the dominating economic perspective into feminist-institutional one would improve the situation of care providers, who would, in turn, contribute to the development of society and the economy.     

Are microfinance institutions resilient to economic slowdown? Evidence from their capital ratio adjustment over the business cycle

Prior studies using pre-crisis data concluded that microfinance institutions are resilient to economic crises. However, some recent studies indicate that the microfinance sector is becoming part of the global financial system and microfinance lending activities are now vulnerable to economic and financial crises. Capital being a key resource to support lending, this paper analyzes the cyclical behaviour of capital ratio using an international sample of microfinance institutions from 2001 to 2014. We uncover a negative relationship between their capital-to-assets ratios and business cycle indicators. This relationship mainly concerns regulated institutions, comprised mostly of profit-oriented MFIs, and is driven by both asset-side and capital level adjustments. We identify the lending channel (loan-to-assets ratio) as the main mechanism to explain these cyclical variations. Our findings are consistent with the “procyclicality” of capital regulation documented extensively in the banking literature. Hence, macro-prudential regulation for MFIs should target regulated and profit-oriented MFIs.     

Convergence of the performance of microfinance institutions: A decomposition analysis

In this paper, we focus on investigating whether and to what extent patterns of performance microfinance institutions converge over time. In particular, we analyze whether patterns of performance are related to changes in operating efficiency, capital deepening, and/or technological change for a large international sample of microfinance institutions for the period 2003–2012. We apply intertemporal Data Envelopment Analysis, a methodology that has been used extensively in the literature explaining patterns of economic growth, but has not been applied yet in microfinance research. We decompose performance changes into operating efficiency changes, changes in capital intensity and/or technological change and find that capital deepening is the most important source of improved performance, especially during the first half, while capital deepening and technological innovations are important during the second half of the period. We also find strong evidence for convergence of performance between microfinance institutions. These trends concur with important changes in microfinance, such as increased commercialization, competition with commercial banks, and involvement of private investors.     

Social capital and social economics

The “discovery” of social capital in the early 1990s led to an upsurge of research into the economic impact of social cohesion and governmental effectiveness. This paper outlines key developments in the social capital literature over the past 13 years. It then examines theory and evidence of the links between social cohesion, quality of governance, economic performance and human welfare. The literature indicates that social capital makes a measurable contribution to economic development and overall wellbeing, particularly in developing countries. Partly in response to this emerging body of evidence, there has been increased interest in the application of community development principles to economic development initiatives. This paper argues that the advent of social capital theory represents a partial convergence between social economics and mainstream economics, and signifies an increased acceptance that economic activity cannot be meaningfully “disembedded” from social and political context.     

人的生命价值理论比较研究

西方关于生命价值理论可概括为两大有别的理论,即人力资本理论和风险交易理论.前者能较容易地客观评估人的经济价值,后者不仅考虑了人的经济价值而且还考虑了非经济的价值.这两种理论和方法各有其优缺点,社会性管制理论在评价政府的管制政策时应把二者结合起来.     

格莱明银行模式:基于关联博弈的分析

从关联博弈角度对格莱明银行模式进行了分析,认为格莱明银行小组贷款模式实现了贷款博弈与社会资本博弈的紧密结合,正是这种紧密关联博弈克服了成员贷款中的 "搭便车"行为.由于重复博弈的存在,社会资本成为一种可置信的威胁,保证了贷款协议的执行,成功克服了合约中产生的代理问题.格莱明银行模式对我国小额信贷激励机制的建立具有重要的参考价值.     

Governance structures in R&D networks: An analysis in the European context

This paper analyses governance structures used to organize partnerships in R&D networks using two approaches: transaction costs theory and social capital theory. We argue that these theories are complementary; this explains forms of governance through the degrees of administrative (structural and safeguard mechanism) and social factors (cohesion and openness) they embody. Data was obtained from European R&D networks created through Framework Programmes which include a great number of universities, non profit institutions and firms. Findings show the variables that characterize and explain the governance forms based on the applicability of R&D networks. This study not only provides a theoretical model for analysing governance structures of these networks, but is also useful for both improving the management of networks and for fostering collaboration at an international level.     

珠三角地区资本结构与劳资关系的实证研究

根据资本-劳动替代的“拐点论”,经济发展的初期总是伴随着物质资本的积累,物质资本将在相当长的时期占据经济增长的主导地位;由于资本劳动的边际替代率递减,当物质资本积累处于一定阶段,产生对人力资本更多需求,人力资本则成为这个时期的主要资本;只有在经济持续发展,政治文明发展到一定程度,信任、规范、网络和社会公德等社会资本才有可能成为推动经济发展的主导力量。珠三角地区城市的劳资关系在近30年均处于下降趋势,物质资本总体处于上升趋势,人力资本意义上的劳动力尤其是高层次高素质的劳动力较缺乏;社会资本可以显著的促进物质资本和人力资本的积累,物质资本水平的提高并不必然产生人力资本积累和社会资本积累的结果,人力资本积累也不必然促进社会资本的发展。需要转变经济发展方式,为资本演化创造物质条件,促进人力资本和社会资本积累,并在企业管理层面上促进合作型劳资关系的形成。     

Social capital and social economics

The “discovery” of social capital in the early 1990s led to an upsurge of research into the economic impact of social cohesion and governmental effectiveness. This paper outlines key developments in the social capital literature over the past 13 years. It then examines theory and evidence of the links between social cohesion, quality of governance, economic performance and human welfare. The literature indicates that social capital makes a measurable contribution to economic development and overall wellbeing, particularly in developing countries. Partly in response to this emerging body of evidence, there has been increased interest in the application of community development principles to economic development initiatives. This paper argues that the advent of social capital theory represents a partial convergence between social economics and mainstream economics, and signifies an increased acceptance that economic activity cannot be meaningfully “disembedded” from social and political context.     

Toward a Political Economy of Markets

In the post-Washington Consensus era, increasing emphasis on private sector-led strategies for economic growth has contributed to the focus of policymakers on entrepreneurship. However, many programs designed to support entrepreneurship are based on an erroneous and biased image of the entrepreneur, with important consequences for development processes and outcomes. Longstanding ideology underlying the entrepreneur as a rugged individual hero shapes not only the masculinist notion of entrepreneurship in most societies, but also the narrow focus and structure of entrepreneurship programs. Microfinance, however, is generally conceptualized as being "different" from other programs, particularly given its informal sector reach and common group lending model. This paper investigates the extent to which microfinance is able to build community, and to sustain individual entrepreneurs' attention to social solidarity economy. Alternative approaches to microfinance, which fundamentally restructure the way it works — specifically considering the issue of community-building — are discussed as a possible "next evolution" of this form of social enterprise.     

Membership has its privileges: the effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers

In this paper we examine the determinants of self-employment success for microcredit borrowers. Theories of social capital and neighbourhood effects are integrated in an attempt to account for earnings differentials among a unique sample of microfinance borrowers. We posit that social capital – social relations that facilitate individual action – is essential for microentrepreneurial success. Based on a survey and data collected by the authors, it is demonstrated that social capital is a positive determinant of self-employment earnings. The role that neighbourhoods play in fostering social capital and improving microentrepreneurial performance are also highlighted. JEL classification: J23, O17, Z13     

社会资本在农村集体经济改革中的演变与构建

狭义上的社会资本指网络关系、社会规范以及信任程度,中国农村集体经济在这些方面具有不同于西方国家的特点。论文分析了在中国改革开放这一制度变迁的过程中社会资本发生变化的机理及其对农村集体经济的影响。根据理论研究提出应重构农村集体经济社会资本,这对于建设和谐社会、实现经济转型和提高农民收入等具有重意义。政策含义是：培育农村经济中介和社会中介组织,建立发挥合作经济的作用,明确供销社和信用社合作性质,同时,基层政府和社区的互动应该有边界。     

A Pathway Forwards for the Social Capital Metaphor

A major topic in economics is the analysis of a broad class of phenomena associated with interpersonal relationships, a topic that originally grew from theories of “social capital.” While the concept has been instrumental in bringing increased attention to social effects on economic outcomes, it has increasingly been replaced with approaches that consider instead networks and discrete interactions rather than aggregate measures of social capital. This has been an analytical improvement, but a great deal of work remains to bring empirical validity and relevancy to social network analysis. This paper presents two important approaches for achieving this, statistical analysis and agent-based modeling, and discusses their benefits, limitations, and complementary nature. Rather than waiting for either approach to achieve an ambiguous quality of maturity, integrating statistical analysis with simulation models of networks must begin now to push the frontiers of social network analysis forward.     

社会资本的经济增长效应

全面而准确地探究社会资本对长期经济增长的影响机制,对提升社会资本在区域经济发展中的地位具有重大的现实意义,但传统的内生增长模型忽略了时间配置对社会资本积累与居民效用的影响.文章将社会资本积累过程内生化,构建了纳入社会资本的水平创新增长模型,综合考虑社会资本和闲暇时间对经济增长的非单调性影响,通过数值模拟发现:社会资本对经济增长具有边际效应递减的促进作用;而闲暇时间与经济增长之间呈现倒U形关系,即适当地增加闲暇时间有利于社会资本积累.文章还基于结构型社会资本的网络嵌入性特征,构建了地级市层面的社会资本测度指标,以验证社会资本具备生产要素的属性.实证结果表明:社会资本对经济增长具有显著的正向影响,其促进作用随着区域内城市经济发展水平的提高而提升;中西部地区社会资本的产出效率高于东部地区,从而间接反映了东部地区社会资本过度集聚的现状;投资水平与技术进步是社会资本影响经济增长的两条重要途径.上述结论为明晰社会资本的经济属性、激发社会资本的经济效益、推动城市集群协调发展以及缩小地区差异提供了有益的借鉴.     

社会资本与经济发展:理论及展望

随着社会资本理论的发展，发展经济学演进到新的发展阶段———“社会关系至关重要”。社会资本理论的引入丰富了经济发展理论研究思路：发展中国家需要构造以社会资本为纽带的综合经济发展体系；在全球化背景下，协调社会资本与现代经济发展是经济学面临的课题。     

Innovative initiatives supporting inclusive innovation in India: Social business incubation and micro venture capital

In India inclusive innovation through social entrepreneurs is currently booming. However, these entrepreneurs suffer from a lack of finance since the bank system as well as the microfinance sector are unwilling or unable to finance them. However, pioneering finance initiatives have been emerging recently to bridge this gap. This paper discusses these emerging alternative financing initiatives which are forming an innovation eco-system of support for inclusive innovation and social entrepreneurship. It highlights two instruments in particular that are used in conventional innovation support: business incubation and venture capital. Two case studies are undertaken in order to provide evidence on how such instruments can operate with a ‘dual bottom line’ in supporting inclusive innovation and social entrepreneurship.     

社会资本与区域产业集聚：理论模型与中国经验

本文将新经济地理学中的资本创造模型（CC模型）和社会资本理论相结合，构建了社会资本与区域产业集聚理论模型，考察了社会资本促进区域产业集聚的微观机制。理论分析表明，社会资本越丰富的地区产业集聚程度越高。在此基础上，笔者运用2004年30个省（市）26个制造业行业的数据进行了经验研究。在控制了区位、经济功能、市场潜力、人力资本、政策等因素和异方差的影响后，社会资本对产业集聚有显著影响，并且在使用工具变量克服变量内生性后，以上结论依然稳健。因而，通过提升中西部地区社会资本，有助于建立中西部地区自我发展能力，缩小区域差距。     

Is Declining Productivity Inevitable?

Fertility has been declining on all continents for the last couple of decades and this development is expected to continue in the future. Prevailing innovation-based growth theories imply, as a consequence of scale effects from the size of population, that such demographic changes will lead to a major slowdown in productivity growth. In this paper we challenge this pessimistic view of the future. By allowing for endogenous human capital in a basic R&D driven growth model we develop a theory of scale-invariant endogenous growth according to which population growth is neither necessary nor conductive for economic growth.