Using a novel enterprise survey from Kenya (FinAccess Business), we document a strong positive association between the use of mobile money as a method to pay suppliers and access to trade credit. We develop a dynamic general equilibrium model with heterogeneous entrepreneurs, imperfect credit...

A recently much debated issue is why observed investment and growth rates inpoor countries are lower than traditional theory predicts. Empirical evidencesuggests that social and political instability is a major reason for thedivergence between poor and rich countries. However, there is still the...

Improving quality is an important element of the transfer of production to low wage countries. Higher quality requirements are part of complex contracting arrangements in global supply chains. This paper analyzes how weak contract enforcement institutions and imperfect factor markets are...

The World Bank has published a series of reports on corporate governance as part of its project on the Reports on the Observance of Standards and Codes (ROSC). The corporate governance principles in its ROSC Reports are benchmarked against the OECD’s Principles of Corporate Governance (OECD...

This study while validating the increasing role for financial intermediaries in economic development has attempted to highlight the importance of reduction of transaction costs for financial deepening and consequent economic growth. It is elucidated that higher transaction costs of borrowing for...

Microenterprises are the main source of income and employment for a majority of the world's poor. Developing appropriate programs to help microenterprises grow remains a challenging task. While injections of capital can often help start-ups, funding sustainable business expansion is clearly a...

Female empowermentʺ has increasingly become a policy goal, both as an end to itself and as a means to achieving other development goals. Microfinance in particular has often been argued, but not without controversy, to be a tool for empowering women. Here, using a randomized controlled trial,...

Mikrounternehmen sind für einen Großteil der armen Weltbevölkerung Haupteinkommens- und Beschäftigungsquelle. Die Entwicklung geeigneter Förderprogramme für Mikrounternehmen stellt weiterhin eine große Herausforderung dar. Während Finanzspritzen oft bei der Unternehmensgründung helfen,...

This paper uses a quasi-randomized control design combined with observational methods to evaluate the impact of a microcredit duration on the welfare of clients of a microcredit organization in western India. We survey respondents from three cities, Mumbai, Pune, and Satara, to understand the...