alexa Learning Curve Spillovers and Transactions

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Learning Curve Spillovers and Transactions

Microfinance institutions (MFIs) in the Philippines have gained a reputation for operating as a for-profit institution reaching the poor through micro-lending. The problem or issue which the study addresses is to determine how MFIs in the Philippines are able to attain operational self-sufficiency, the established indicator for financial viability among microfinance institutions, in spite of high transactions cost. The phenomenon may be verified by the following research question: does the behavior of operational and transactions costs among group and individual microfinance lenders manifest experience or learning curve spillovers and a U-shaped supply curve? The study has two objectives. First, using appropriate measures of financial and social performance, the study shall empirically verify the phenomenon of experience or learning curve spillovers among MFIs. Second is to estimate the supply curve for loans to the unbanked poor and verify that it is U-shaped.

 
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