Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18330
Authors: 
Schäfer, Dorothea
Siliverstovs, Boriss
Terberger, Eva
Year of Publication: 
2005
Series/Report no.: 
DIW Discussion Papers 479
Abstract: 
Competition is claimed to be beneficial in development projects promoting micro and small enterprise finance although there are still some doubts whether these loans can be developed into a profitable business. Actually nothing is known about how many MSE banking units optimally should be created and supported in a certain region. Our research aims at shedding new light on this important issue in development finance. We employ a unique dataset from the Small Business Department of the European Bank for Reconstruction and Development for Kazakhstan, and investigate which strategy contributes more to the overall program?s success: a strategy of building up several competing banking units targeted at MSE lending or a strategy of establishing regional monopolies.
Subjects: 
development finance
micro loans
competition
financial institution building
JEL: 
G21
O16
G28
O18
Document Type: 
Working Paper

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