Small sums, big impact: Corruption and microfinance institutions

Microfinance institutions (MFIs) have been promoted worldwide as developmental platforms that can help eliminate some of the major global challenges such poverty and economic development. The effectiveness using MFIs to fulfil expectations depends on their performance, which be affected by a range institutional factors corruption, rule law financial sector However, there is lack clarity whether these are performance inhibitors or promoters. Using gender mediating factor, this study develops tests relationships MFI with aim contributing research corruption in Global South. Drawing model, uses data operating 33 African countries. results reveal control reduces MFIs’ expenditure, while it increases income. from essentialist perspective theory social construction gender, argued female borrowers shown impact relationship between variables tested (such corruption) performance. also has public policy relevance for nations seeking use means fostering entrepreneurship