—The present study examine the most important
issue faced by microfinance institutions around the world in this
present era that is the commercialization trend and drifting size.
This study will analyze whether the commercialization from
their primary function of serving poor class of the society to
moving towards better off customer in order to satisfy their
urge of financial benefits. This study is using average loan size
as proxy of mission drift with operational self sufficiency as
profit measure, productivity as cost measure and repayment
risk as independent variables in the study .The study also
accommodate age ,size as control variables .Data has been taken
from all the six regions of the world from 72 countries for the
years 2003 to 2009.The econometric evidence using random
effect estimation technique reveals that profitability and risk
are positively related with average loan size where as cost is
inverse relation with size of loan . The impact of age and size
varies from region to region.
—MFIs, AVGLS, OSS, PROD, REM.
Afsheen Abrar is with the Shaheed Zulfikar Ali Bhutto Institute of
Science and Technology, Islamabad, Pakistan (e-mail:
Cite:Afsheen Abrar and Attiya Y. Javaid, "Commercialization and Mission Drift — A Cross Country Evidence on Transformation of Microfinance Industry," International Journal of Trade, Economics and Finance vol.5, no.1, pp. 122-125, 2014.