MAINTAINING ORDER IN THE MICROFINANCE SECTOR IN GHANA
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 3
Abstract
This study examines the processes of maintaining order in the microfinance sector, particularly, the processes of resolving disputes, the types and causes of disputes that arise between microfinance institutions, their clients and workers. The study used empirical evidence derived from microfinance institutions, their clients as well as employees and commission agents within the Greater Accra Region of Ghana to aid in the examination of how order is maintained as well as the processes of resolving disputes in the microfinance sector. The study suggests that the adoption of an informal alternative dispute resolution mechanism yields better and cheaper results than litigation or legal means. The study further suggests that, parties to a microfinance transaction are reluctant to resort to litigation and would rather borrow at high interest rates to pay off loans than litigate. The findings show that MFIs maintained order by keeping good working relationships with their clients and staff as well as conducting credit or background checks on both clients and staff before dealing with them. Record keeping was also found to be crucial in the maintenance of order in the microfinance sector.
Authors and Affiliations
Olivia Anku-Tsede| University of Ghana Business School Department of Organization and Human Resource Management
Tax Structure and Economic Growth in Côte d’Ivoire: Are Some Taxes Better Than Others?
This paper examines the relationships between taxation and output in Côte d’Ivoire during the period 1960-2006. The bounds testing approach to cointegration devised by Pesaran et al. (2001) showed that tax variables, exc...
COST AND PROFIT EFFICIENCY AND MANAGEMENT BEHAVIOUR OF COMMERCIAL BANKS (EVIDENCE FROM TANZANIA)
Using non-parametric technique (the Data Envelopment Analysis - DEA) for data from 1998 to 2011, we investigate the cost and profit efficiency and management behaviour of 25 Tanzanian commercial banks. We examine the inf...
SUSTAINABILITY OF SMALL AND MEDIUM SCALE ENTERPRISES IN RURAL GHANA: THE ROLE OF MICROFINANCE INSTITUTIONS
This paper is based on a research work undertaken in 2012 on the dynamics of microfinance institutions (MFIs) and their contribution to the development of small and medium scale enterprises (SMEs) in Ghana. It investigat...
EMPIRICAL TESTING OF EXCHANGE RATE AND INTEREST RATE TRANSMISSION CHANNELS IN CHINA
This paper examines the exchange rate and interest rate volatility transmission channels in China by applying Granger causality, Johansen cointegration, and the VAR model. Empirical results taken from the exchange rate c...
WAGNER’S LAW IN SAUDI ARABIA 1970 - 2012: AN ECONOMETRIC ANALYSIS
Our goal in this paper is to explorethe validity of Wagner’s Law in Saudi Arabia during the period (1970-2012) for real oil GDP and Non-oil GDP.Wagner’s Law investigated that fundamental economic growth is validity to th...