ISSN 2329-9797
International Journal of Agricultural Economics and Extension ISSN 2329-9797 Vol. 7 (8), pp. 001-007, August, 2019. © International Scholars Journals
Full Length Research Paper
Microfinance, inequality and vulnerability: Empirical analysis from Central African countries
Gérard Tchouassi
Department of Economics, University of Yaoundé II, Cameroon and LEFI, University of Lyon 2, 14 Avenue Berthelot, France. E-mail: [email protected].
Accepted 11 March, 2019
Abstract
This study examines the relationship of microfinance, inequality and vulnerability by providing a cross-country empirical study of 11 developing countries in Central Africa. Microfinance plays an important role in the financial market in many African countries. Although microfinance is expected to significantly affect macro variables, we lack enough empirical research on impact analysis at the macro level, such as the effect of microfinance on inequality and vulnerability. Results indicate that the number of microfinance institutions has a negative impact on the Gini index in Central Africa countries. When the microfinance institutions in the country become dense, inequalities decrease.
Key words: Microfinance, inequality, vulnerability, cross-country analysis.