On the empirics of microfinance institutions and local economic development in Africa

The link between finance and growth is a well-researched area, yet this relationship at the local level has received little empirical scrutiny. We trace operations of Microfinance Institutions (MFIs) in Africa. examine role played by MFIs on economic development using model capturing both geography dynamics for periods 1992–2015. Our sample representative 2,170 operating 144 cities, 154 towns, 14 villages Using night time data to capture growth, our key hypothesis that drive progress. Conditioning geographical location MFIs, we find presence density increase as light estimate retains its statistical significance. results suggest may foster activity.