Microfinance and Sustainable Development: A Meta Analytic Review

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Microfinance and Sustainable Development: A Meta Analytic Review

Dr. Chandan Medatwal1 , Dr. Namita Gupta2 , Ms. Manisha Nama3 1(Corresponding Author) Assistant Professor, NIIT University, Neemrana, Rajasthan 2Assistant Professor, Sharda University, Greater Noida, UP 3Research Scholar, Career point University, Kota, Rajasthan

Abstract: Purpose: This paper discusses upon microfinance as an instrument for achieving sustainable development with regards to different activities taken by various organizations. Secondary data has been gathered from the annual reports of different departments, journals, books & research papers. The main objective of this study is to quantitatively aggregate the findings of prior literature on the effect of Microfinancing on Sustainable development using the meta analysis technique developed by Hunter et al. (1982).

Design/methodology/approach: A set of 50 research papers that directly studied the relationship between Microfinance and Sustainable development was analyzed for the purpose. In addition to overall meta analysis, a detailed subgroup study was also conducted to test whether the differencesin results are due to moderating effects related to different sustainable development aspects.

Findings: The findings of this meta analysis confirm that Microfinance is negatively associated with sustainability, which means an aggressive approach of microfinancing policy leads to highersustainability.

Originality/value: Unlike narrative literature review papers, this meta analysis provides quantitatively aggregate evidence on the relationship of microfinance and sustainability. To the best of authors’ knowledge, no previous meta-analysis paper is published on the topic.

Keywords: Microfinance, economy, sustainable development, emerging economies, developing and underdeveloped countries.

I. INTRODUCTION

Microfinance, a financial innovation, originated in Bangladesh, when Prof. Mohd. Yunus changed the lives of millions of Bangladeshis by creating the concept of micro loans. The idea came to hismind by involving himself in fighting poverty during the 1974 famine in Bangladesh.

Microfinance is a broad spectrum of financial services provided to the people of low income groups who cannot take assistance banking and allied services. The purpose of methodology that employs effective collateral substitutes to deliver and recover short term working loans to micro entrepreneurs’’ CGAP (2003). Microfinance is “the provision of financial services to low incomepoor and verypoor self employed people” Otero (1999, p.8).

The major objective of microfinance is to outreach the poor, making positive impact and maintaining financial sustainability. Microfinance is a model specially designed for serving the poor. Microfinance programs provide small loans to poor persons for self employment projects, taking little or no collateral. “Microfinance is a provision of thrift, credit and other financial services/products of very small amounts are provided to the poor in rural, semi urban and urban areas. Anyone availing this facility has to engage in some productive activity that will generate income.” It includes financial products like micro savings, micro credit, micro insurance, etc. Besides technical assistance, capacity building, social and cultural programs can also be considered as motivating activities.

Microfinance across the world began as the activity of informal savings and credit groups, moneylenders, donors, and NGOs. In manyifnot mostdevelopingcountries, microfinanceactivityhas grown to the point where financial regulators see the need to frame a policy, and eventually tointegrate some portion of the microfinance spectrum into the framework of regulated financial services institutions. (Patrick Meagher 2002)

The mission of microfinance and MFIs is to contribute of sustainable development ,social welfarean progress (Hassan et al, 2011; Hudon 2009; Schreiner 2002) by spending up financial development and economic growth (Delia 2011; Lopatta and Tchikov, 2016; Swamy and Tulasimala, 2011; Vanroose and D’ Espaller, 2013) and accounting for poverty alleviation (Barr2005; Casselman et al 2015); Imai et. al 2012; Kleynjans and Hudon, 2014).

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Over the last 30 years, major theoretical developments have occurred in the areas of microfinanceand sustainable development. Many of these new concepts and related techniques are now being employed successfully in microfinance industrial practice. In contrast, far less attention has been paid to the areas of sustainable development. Such neglect might be acceptable because of microfinance lending is relatively little importance to the sustainable development. Due to this reason, only peripheral research interest in studying microfinance process has been shown in the literature. This may occur for several other motives, because decisions dealing with microfinance lending and its impact are routine in nature in developing and underdeveloped countries.

II. SCOPE OF THE STUDY

The central idea of this study is to provide a comprehensive. Literature review on determinants ofmicrofinance. To the best of our knowledge, there is no literature review on determinants of microfinance. This study is therefore the first give a bird eye view on the major work carried out on determinants of microfinance. More specifically, it intends to study the major microfinance determinants which are consistent with various theoretical models. The study reexamines the research investigating consequence of microfinance and categorized selected research article as per their approach and methodologies. It further explores research gaps in the related area and recommends potential direction for future microfinance research. The study attempts to synthesizethe literature finding on determinates ofmicrofinance. A systematicapproach is applied toexplainmajor findings of review and there by highlighting the gaps in the literature. Thus, it provides a pathwayfor future research in the area of microfinance. Research is the area of microfinance has revealed that are inconclusive and still a puzzle for the researchers. This study has tried to detangle this puzzle by combining the result of different research papers through Meta analysis. It was found that the empirical studies conducted on microfinance have mainly focused on the result and summarize the main study conclusion . However, this main study conclusion. However, this study tests the result of empirical studies which have been statistically tested, revealing an overall relationship between criterion and predicator variables. Therefore, the meta analysis technique is applied to synthesize the findings of the previous studies trough a statistical evolution to clarify the previous in conclusiveness in themicrofinance impact on sustainable development.

This paper divided in 6 sections. Section 1 present an overview of the various studies ofmicrofinance developed by eminent researchers. Section 2 offers a brief review of the exiting literature accessed from the data base and select the final set of the papers for this study. Section 3 describe the methodology used in the paper followed by an analysis of research findings and research gaps identified in the existing literature. Section 4 discusses the data analysis techniquesused in literature whereas Section 5 portrays the findings from the review. Lastly the section 6 presents the conclusion and suggests the avenues of future research.

A. An overview of Microfinance Research

Major research work on microfinance originates from the well known articles by eminent scholars way back three decades ago, of which has led to the emergence of various Models ofmicrofinance. Researchers, in general, tend to have different perspective of microfinance. Table I summarizes all the major views of renowned researchers on microfinance.

Table 1: Research Outlook

Sr No Researchers Year Researcher's outlook/ Contribution

1 Sidney Ruth Schuker and Syed M. Hashemi

1994 Findings suggest that programs modeled after the Grameen bank can play important roles and by advancing women's empowerment

2 Eric et. al. 1998 Impact assessment system are critical investing the hypothesis that business development service can producemore sustainable increase in microenterprise productivity than credit alone. They can also help identify the most effective combination of services if similar enterprisesreceive a different mix.

3 Joanthan Morduch 1999 Investigation on microfinance while identifying issues

4 Aminur Rahman 1999 The microcredit and micro enterprises developmentproject are going to be the significant components of the 21st century development initiatives in both poor andindustrialized countries

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5 M. A. Baquikhalily 2004 There is no doubt that demand side analysis of the impactassessment studies shows positive impact on poverty reduction and the household and individual level outcomes. However, these findings have implication for continuity of the programmes. But long run sustaining financing of poverty reduction programmes requires sustainabilityof the micro finance institutions.

6 Anupam Basu, Rodolphe Blavy & Murat Yulek

7 Sohail Agha, Asma Balal & Francis & Ogojo opello

2004 The existence and growth of cooperative banking andcombined savings and credit institutions in themicrofinance sector in Sub Saharan Africa reflects the growing demand for both savings and credit facilities.

2004 Microfinance have an important role in strengtheningprivate sector health service by increasing private providers business skills and client’s satisfaction withservice.

8 Shahidur R. Khandker 2005 Results suggest that access to microfinance contributes to poverty reduction, especially for female participants and tooverall poverty reduction at the village level.

9 Gupta, Kamal & PrincyYesudian 2006 women is some of the northeastern states show high household autonomy and freedom ofmovement but donotshow high attitudes towards gender equality.

10 Asuman Altay 2007 The final conclusion is that even though the microfinance movement reached Turkeyinthe2000s(after earthquakein 17 August).Turkey have yet to enter the microfinancerevolutionand commercial microfinance has not sufficient in the country, and the programs are still dependent on a few NGO’s and external funding to a large extent.

11 Matthieu Chemin 2008 Finds significantly smaller estimates than previous studiesor the Grameen bank estimates and also suggests thatmicrofinance is not good at targeting the poorest in participating.

12 SalehuddinAhmed 2009 Shows MFI and various modalities of delivery of financialservices to the poor have contributed to the development efforts of Bangladesh where a large number of people livebelow the povertyline

13 Amitrajeet, A. & Batabyal, Hamid beladi 2009 Results shown that adverse section related program that plague the interactions between borrowers in developing nations and MFIs can be mitigated using concept of grouplending.

14 Abdul Rahim, Abdul Rahman 2010 Economic and financial development of the poor andmicroentrepreneurs

15 Manish Kumar, Narendra Singh Bohra & AmarJohri

2010 The potential for growing microfinance institutions inIndia is veryhigh.

16 Niels Hermes, Robert Lensink 2011 Found that MFIs that have a lower average loan balance (ameasure of the depth of outreach) are also less efficient. Moreover, we find evidence showing that MFIs that have more women borrowers as clients (again a measure of the depth of outreach) are less efficient.

17 Ferdwshi Ahmed, Chamhari Siwar, Nor Aini HJ. Idris & Rawahan Begum.

2011 Rural women after joining Grameen bank's microcredit program have been able to engage themselves with incomegenerating activities and consequently reduce significantly generating activities and consequently reduce significantly their povertysituation.

18 Madusudan Ghose 2012 Results show than the average annual net income assets and saving of household increased significantly in postSHG situation.

19 Ron Weber & Oliver Musshaff 2013 The agricultural firms with flexible microfinance loans have significantly higher credit access probabilities than nonagricultural firms and agricultural firms with standard microfinance loans.

20 Maroti N. Gaikwad &Srihari C. Reddy

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2013 Through this, SHG women are standard their life at aspectafter joining in SHG with there is drastically developmentis occurred in educating at all aspects and this were strengthening their socio economic situation.

21 Medatwal, C 2013 The MUPS/BASIX movement have beneficial impact onwomen empowerment.

22 F.K Aveh, R.Y. Krah, P.S Dodzie 2013 Multiple factor analysis established the regression model was significantly in established relationship between the dependent variable operational self sufficiency and the predictors.

23 Johan Weiss & Heather Montgomery

2013 Microfinancehas positive impact on povertyeradication.

24 LeifAtle, BeislandRoy Mersland 2013 Found that the relationships between economic activity, income and access to microfinance for persons with disabilities mirror those in the general Ugandan population. This found a clear indication that persons withlow incomes have less access to formal savings and loans than persons with average income. Also confers that there were small differences in the relationship between income source/economic activity and the use of microfinance services when informal microfinance services are considered.

25 Shahidur R., Khandker, Hussain A. Samad& Zahed H. khan

26 Hilind Sathye, Beenu Gopal Mukhopadyay & Sunnera Sathye

27 M. L. Chhipa, Swatantra Sharma & Dubey, R.

2014 Micro credit programmes have brought about desirable impacts at the village level in terms of income, employment, and production, especiallyin the nonfarm sector.

2014 Found that borrowers suicides in A.P could have been avoided had the MFIs in that state followed the ethical practices similar to the MFIs in West Bengal which have demonstrated how to successfully toggle between competing objective of financial sustainability and outreach.

2014 The impact studies proved that the community based approach of microfinance and livelihood has high positiveimpact whereas the MFI model has not impacted poverty to that extent.

28 Sad K. Ghalib &Issam Malke 2014 Found that microfinance can be used as an effectivemeasure in alleviating povertyin the country

29 Gaamaa H., Martin Spahrignacio Estevez & Barbara Magnoni

2014 Studied the measures of Microfinance.

30 Karel, J. & Batbayar, T. 2014 Revealed that financial performance of microfinanceinstitution bytheir earnings performance in terms of yield of the gross loan portfolio.

31 Ashwin G. Modi,Kiran J Patel & Kundan M. Patel

2014 Microfinance has improved their economic conditions andenhanced their family decision making. The study also indicates that the living standard of their family has improved.

32 Arindam Lahaa & Pravat KumarKurib 2014 Women empowerment is found to be a powerful correlateof microfinance outreach among the poor households.

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33 Sreemoyee Das, Mitra,A. &Ali, H. 2015 SHG have mixed response upon the women members. Despite social and economic barriers there are a number of promising women entrepreneurs groomed bySHGs.

34 Ranjula Bali swain 2015 Shows that more favorable initial conditions and enablingsocio economic environment for instance better infrastructureallow SHGs to bemoreeffectivein reducingvulnerability

35 A.K.M. ShahidullahandC. Emadad Haque

36 R. Vishnuvarthiniand A.M Ayyothi

2015 Promoting green micro enter would contribute to local andnational sustainability goals through reduction of Greenhouse gas if theywere scaled up successfully.

2016 SHG members gain equality of status women asparticipation anddecision makersin democratic, economic and sphere of life.

37 Kajal, J. Vipani 2016 Microfinance can contribute in to solving the problem of in sufficient housing and real service as integral part of poverty alleviation programs and empower women to playa vital role in the society.

38 Jesu Raju Thomas & Jyoti Kumar 2016 To get the absolute solution to provide microfinance services helps in achieving the long term goal.

39 Madhu Sherawat& A. K. Giri 2016 The co integration test confirms a long run relationship between financial development a poverty reduction for India. ADRL test result suggest that financialdevelopmentandeconomicgrowth reduces povertyin both longrun and short run.

40 Santa Kar & Joyeeta deb 2017 Result shows that average technical efficiencyofthe MFIsis estimated to be 79% under BCC model and undesirable measure model. Indian MFIs can attain production frontierif they can trim bad output (proxied by portfolio at risk 30)to an extent of around 14 %.

41 Alberto Posso & Prema Chandra,Athukorala 2017 Increase in proportion in MFI clients in country is significantly and associated with lower under five andinfant mortality.

42 Quanda Zhang & Alberto posso 2017 Negative relationship between women's participation inmicrofinance and GI using panel data were found.

43 Dr Sonia Singla 2017 The microfinance has a profound influence on the economic status decision making power, knowledge and self worthiness of women participants of SHG linkage program in Ghaziabad.

44 Sanskriti Singh 2017 Microfinance industries is growing at a fast pace and can be understood as supplement to poverty alleviation programme in India.

45 Vani Kapoor & Vatsal Dhaka 2017 Concluded that accessibility to the product offered byMFIs affects financial performance of micro enterprises positively.

46 Adams, A. & Tiwari, D. 2017 Found a negative correlation between sustainability and depth of outreach, though statistically insignificant. This suggest the absence of tradeoff between sustainability anddepth of outreach

47 Sharma, B. 2017 microfinance program has been recognized as one o themost successful and rapidly growing programme in Rajasthan

48 Qurra tul Ain butt 2017 Sets out to integrate CSR with microfinance institution forpoverty reduction and economic development in Muslim majoritycountries.

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49 Rajanibala J shah& Patel, A. 2017 Concluded that microfinance is very necessary thing in India where most people areless educated and thepositionof requiring basic financial service.

50 Maoly, Ali 2017 The proposed descriptive discriminant analysis is conductive to achieve the result that microfinance has a highly significant effect on improving living standards and lowering poverty.

51 Agarwal, Hari 2018 Shows that percentage of most respondents by SHG are already associated with SHG group. Most respondentshave joined the SHG to get loans to buylivestock.

52 Krishna, B. 2018 Shows that the positive role played bythis sector is evidentfrom the awarding of universal banking and small financebank licenses to the top MFIs in India , MFIs now need toreevaluate their current positioning in the market and remodel themselves in order to stay relevant in terms of providing capital.

53 Patrick Reichert 2018 Results indicate that the use of depth of outreach, cost of outreach, and efficiency indicators are found to increase significantly the likelihood of confirming trade offsbetween the financial and social objectives of MFIs. Time trends also show that observations from earlier time periods are more likely to confirm trade offs, suggesting that conflict between the social and financial goals ofmicrofinance becomes less severe over time.

54 Soloman Bizauayehu wassie & Hitashi Kusakure

2019

55 Kelly Gerard & Melissa Johnston 2019

Econometric estimation results show that assets holding the number s of loan officers loan offices productivity, personnel productivity and the yield on gross portfolio haveasignificanteffect on thesocial performanceofMFIs in Ethiopia.

The article analyzed reforms to the Australian social security system since the 1990s, highlighting the trends ofreduced accessibility, increased activity tests, and strengthened sanctioning regimes, alongside stagnating payments and incomes and increased household debt.

From Table 1 the following inferences can be drawn regarding the development in the field of microfinance.

1) Thefinancialperformanceofmicrofinancehasapositiveeffecton socialandeconomicconditions.

2) Emergence of new theoretical models of microfinance for sustainable growth.

B. Earlier Observations on Microfinance

Although microfinance is considered as on important area, research has sought to produceevidence and new ideas on issue that affect the sustainable development of developed and developing countries only handful of papers have reviewed literature on the topic. Oneofthemajorbreakthroughs in the literature review of microfinance is providing byEric et. Al (1994). One common observation about these reviews is that they are based on theories of microfinance and no other chronological, Methodological and thematic approach incorporated in analyzing literature. Therefore, to the best of the author’s knowledge, the present paper is the first attempt inproviding comprehensive and reputed journals. This highlights the major work done in the area. While aiming at providing potential direction for future research.

III. RESEARCH METHODOLOGY

The methodology used for reviewing the literature must be systematic; it must explicitly describethe procedure for conducting the review, comprehensive in scope and include all relevant materialrelated to MF phenomena. In this paper, we have used systematic literature review methodology to analyze the research work on microfinance. A systematic review is a tool used to summarize, appraise and communicate the result and implication of large quantity of research and information.It aims to provide an exhaustive summary of current literature relevant to the research question. The systematic review methodology is designed to reduce any unintended bias, which may occurin the use of other review methodologies.

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A. Time Horizon

In this review we have selected journal articles published during 1998 2018, but the majority of the articles are those published during 2001 decade. Therefore, we felt that a time span of approximately 20 years were enough to review the literature comprehensively.

Table 2: data base and Final Set of the of selected papers for the study

Sr No. Data base Search criteria/ keywords/ abstract/ title

Total No. ofpapers Excluded papers Exclusion criteria Final set 1 Emerald Microfinance Poverty, FinancialDevelopment 7 3 Only Theoretical ground

4 3 Inderscience Microcredit, Reduce poverty 3 2 Only Theoretical ground

1 6 Elsevier NGOs, Microenterprises, sustainability

3 1 Irrelevant for ourstudy 2 7 springer Women empowerment 1 0 1 8 Taylor Microfinance, Sustainable Development, Empowerment, Poverty, Financial performance, Effect of microfinance, Meta Analysis

15 9 IJSER Microfinance,women empowerment 2 0 2 10 IJSER Microfinance, SHG, women empowerment

17 2 Only Theoretical ground

2 0 2 11 IJCSMS Microfinance andrural development 4 3 Theoretical Coverageonly 1 12 GJRA Microfinance and women empowerment 3 2 Only Theoretical ground

1

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13 Practical Action Publishing Microfinance, sustainability 5 2 Only Theoretical ground

3 14 IJMAS Microfinance, Financial intermediaries

1 0 1 16 Research India publications Microfinance, poverty reduction 1 0 1 17 Pacific Business Review International

Microfinance and sustainability 1 0 1 18 EPRA Microfinance andSHG 1 0 1 19 journal of business & financial affairs

Microfinance,CSR 4 3 Only Theoretical ground

1 20 journal of rural development

Microfinance, Development and Poverty eradication

1 0 1 21 IOSR Empowerment,SHGs, Microfinance 4 0 4 22 IJMSS Microfinance in India, Issue and challenges 4 3 Not Met the purpose of study

1 23 John Wiley& Sons Microfinance & Sustainable development

5 2 Not Met the purpose of study

3 24 World bank Microfinance and povertyreduction 3 2 Not Met the purpose of study

1 25 CS Canada Microfinance & Sustainable Development

3 2 Not Met the purpose of study

1

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26 Social Science MFIs and social performance 2 1 Only Theoritical ground

1 27 Academic journals Microcredit,Poverty 2 1 Only Theoritical ground

1 28 HSR Microfinance and Qualityof care 1 0 1 29 Pergamon Microcredit and Sustainable development

1 0 1 Total 81 52

B. Literature Collection and Boundary Identification

We started our review with a key words /phrase and then delimited the literature, using a combination of deductive approached. As input criteria, we initially used words like microfinancewe assumed that determinants of capital structure would be present in the abstract or key words orlittle of the article. we searched this terms in all type of document including case study, research study, research papers, technical papers, review paper, conceptual paper and working paper document. Our initial search data base includes EBSCO, Springer, Sage, Inderscience, Elsevier. In the preliminary phase of the review ,we have searched papers on microfinance and sustainability.

1) Articles published onlyin peer reviewed journal were considered;

2) Articles were collected for a period of 21 years (1998 2019)

3) Articles written onlyin the English language were included.

4) Articles addressing determinants of microfinance.

5) Articles were collected with full text.

Using the above delimiting criteria, we found 52 research papers.

Table 3:Region of the study

Year of Study MultipleRegion Asia pacific Middle East Europe MiddleWest America Africa Total 1994 1 Bangladesh 1 1999 1 Bangladesh 1 1998 1 Canada 1 2004 1 Bangladesh 1 2017 3 (Middle East, African, Asian, European, Latin America) Islamic Countries, Bangladesh, India, 64 developing nations)

8 2004 1 Uganda 1

3 India and Bangladesh 2 African,Sub Saharan Africa.

International Journal for Research in Applied Science & Engineering Technology (IJRASET

ISSN: 2321 9653; IC Value: 45.98; SJ Impact Factor: 7.538 Volume 10 Issue XI Nov 2022 Available at www.ijraset.com

2005 1 Bangladesh 1 2006 1 India 1 2007 1 Turkey 1 2008 1 Bangladesh 1 2014 7 Bangladesh, India, India & Pakistan, Central Asia

1 Latin America 1 Uganda 9 2013 1.(AsiaandLatin America) 4 India 2 Madagascar, Ghana

7 2015 4 India and Bangladesh 4 2010 1. Islamic countries 1 India 1 Islamic country

3 2016 4 India 4 2019 1 Australia 1 Ethiopia 2 2018 1 South Asiaand Africa 1 India 2 2012 2 India 2 2011 1 Bangladesh 1 Guatem alan

2

Total 7 33 1 0 1 3 7 52

The above Table 3 clearly shows that the requirement of microfinance is mostly prevalent in developing countries in Asia Pacific Region. Then the next is in multiple regions followed by theAfrican Regions. In one of the studies reveals that the relationships between economic activity, income and access to microfinance for persons with disabilities mirror those in the general Ugandan population (Finscope 2007; Johnson and Nino Zarazua 2007).

Table: 4 Data analysis technique used

Years Ratio Analysis Regression S E M Mixed Other Grand total 1994 1 1 1998 1 1 1999 2 2 2004 1 T testand multivariate logistic regression

1

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2005 1 1 2006 1 1 2007 1 1 2008 1 1 2009 1 1 2010 2 2 2011 2 (Sums, Means, percentage, Frequency distribution and cross tabulation)

2 2012 1 1 2013 1 3 (Probability,Chi square)

2 6 2014 1 3 4 (correlationand multiple reggression and ANOVAand percentage)

1 percen tage

8 2015 2 1 3 2016 1 1 2 4 2017 4 5 (Correlation and Percentage, correlation and fixed effect regression)

11 2018 2 Percen tage 3 2019 2 2 Grand total 52

2 Chi square

Table 4 gives an idea on the kind of research methods used for the study. It has been observed from the table that the regression and correlation were the major ways to find the quantifiable solutions for the beneficiaries of microfinancing. From the discussion above in Table 1, these recommends towards the worth life with respect to the poverty reduction as a major emphasis on comparatively deprived areas.

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Table: 5 Microfinance theories and no. of times its assumptions used to explainsustainable development

Region MFI model

Asia pacific 7 DEA (Non Parametric Data Envelopment Analysis), PHNFC, SHG, PSM, ARDL (Auto Regressive distributed lag), IGA (income generating activity), Bank linkage model, BRAC

Middle east 5 Mudarabah, Musharakah Murabahah, Ijarah, Integrated model

MFI theory total

2 Ecological Modernization and Innovation, Entrepreneurship theories

9

5

Africa 3 Heckman, Fixed Effect and Random effect Model ,SUR model 3

Developing Nations 1 PWB GI proportion of women borrowers gender in equality Meta analysis 2

Total 16 3 19

Table 5 shows that the most used MFI models by thoroughly used by the theorist in their own styleand proposed the theories in Ecological, Modernization and Entrepreneurial context. Importantly,the meta analytic review were limited to research on the major grounds of gender equality. So far, from the available literature, a total of adopted 16 models and 3 theories were found to getsignificantlyused.

IV. DISCUSSION AND FINDINGS

In this section we discuss the findings and address our research question: What kinds of research issues baskets the sustainable development?

Based on the analysis of the retrieved publications, weidentified gaps and limitations in empiricalresearches, study backgrounds, and theoretical frameworks, and then revisited the literature to reflect these issues from that outlook. We identified the following two major conceptualissues andthree major methodological issues as the most relevant to current era on sustainabilityground. The conceptual issues are: Firstly, the lack of systematic theory development; and secondly, the devolution of microfinance concepts. The methodological issues are thoroughly combining the dominance of quantitative exploration, the lack of longitudinal research and the focus on lesser units of microfinance institutionsconsidered for research under researches.

The issues are discussed in detail below.

A. Conceptual Issues

1) Lack of Systematic Theory Development: A variety of theoretical perspectives was used to examine sustainable drivers and aspects, and in fact, many of the retrieved articles made references to several theories. If clearly presented, we identified the fundamental theorythat guided each study; otherwise we defined it as problem based(as opposed to theory based) research (see Modi et al, 2014, Ghalid et al 2014 & Janda 2014). Problem based research aims to solve a specific problem by using different. Also, a relatively large amount of MFI research is oriented towards just for the sake of problem solving (instead of theoretical building), invoking a wide range of theories, of which several are not directly commanding the sustainable development. This often provides a limited contribution to set a systematic development of an overarching sustainabilitydimensions.

Impact Factor 7.894

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2) Devolution of Microfinance Concepts: On the flip side, he devolution of microfinance concepts, largely drawn on microfinance issuanceof financing facilities and investigation tenets (Eric et al, 1998; Jonanthan 1999; Aminur, 1999; Baquikhalily, 2004 and Basu 2004). Grounding research on MFI and its practices investigated in terms of few largely used variables viz., poverty reduction and Bank linkages but still the critical success factors unaccounted for.

B. Methodological issues

The dominance of quantitative exploration Dominance of quantitative exploration shows the range of research methods have been applied toexamine MFI performances on socio economic welfare in the society. Most of them have been quantitative in nature. However, an extensive use of quantitative methods in a field which has not gained maturity on performance of microfinance institutions (Hilind, 2014; Karel, 2014). Most of the quantitative studies have adapted their constructs and scales directly from availing financing facilities as per the bank linkage models without preliminary qualitative analyses, resulting in empirical research which lacks an holistic model to quantityMFI performances for sustainable development. Consistent with Adams (2017), our review suggests that the current state of theory and research for MFI is still largely emerging, thusreviewingupon moreexploratoryqualitative buildingwouldenablestatistical analyses and extensivehypothesis testing. Matthieu (2008) offers acontradictoryview that microfinance is not good at targeting the poorest in participating.

V. CONCLUSION

This study integrates findings of previous studies regarding the impact of microfinance onsustainable development. While showing the meta analytic review based on the year wise researches and gradual development scenarios, this study provides systematic review across several regions. While portraying review of the microfinance literature, and identifies 52 relevant journal publications, containing conceptual issues and major methodological issues present in the literature provides the direct and indirect contribution towards sustainable development. To summarize the findings of the review, it seems that conceptually research on MFI is still ongoing but lacking a solid theoretical foundation and drawing largely on theories developed in context offinancial leverages and bank linkage programmes for poverty eradication. In compendium, creating knowledge requires a critical review of studies employing a common theoretical framework (Zimmerman, 2001). Though, instead of building on prior studies and providing cumulative research insights, many of the selected publications considered under study have focused on attempts to further knowledge in the adjacent literature. Also, making little effortto place their studies within a broader conceptual context in order to relate MFI impact on Sustainability is the core. Microfinance and sustainable development relevance literature is nascent, and more remains to bedone. As a response to the concern, we have made an attempt to assemble and interpret the extantMFI efforts for socio economic development. So that subsequent research efforts can be directedto areas for long run where they will have the most impact. By portraying the research issues discussed above, we anticipate future research to contest these issues with their implications, and avoid making the same missteps in the future, thus potentially abetting towards sustainability concern. By introducingsystematicmetareview of microfinanceandsustainabilityliterature, weattempttoprovide scholars with a comprehensive understanding of the current state and the directions for further avenues.

VI. LIMITATIONS

While we confer the properties and limitations of the existing literature, we want to recognize thewider domain on sustainable development. Our data include published and peer reviewed journalarticles, retrieved from five different databases. Thus, we propose that we have a good coverage of the existing rapport publications of microfinance from varied sources. Table I, tends to index slightly different publications whereas rest of the tables shows the study regions and methods. Theoptimal inclusion of published journal articles has certain inherent limitations, such as omitting thenewest research due to time consuming peer review practices. Hence, we might have neglectedsome additional data in this study. Therefore, the identified review and future research avenues might not exhaustive. Rather, theyshould be treated as suggestions to provide research base.

REFERENCES

[1] Abdulai, A., & Tewari, D. D. (2017). Trade off between outreach and sustainability ofmicrofinance institutions: evidence from sub Saharan Africa. Enterprise Development and Microfinance, 28(3), 162 181.

[2] Agha, S., Balal, A., & Ogojo‐Okello, F. (2004). The impact of a microfinance programon client perceptions of the quality of care provided by private sector midwives in Uganda. Health services research, 39(6p2), 2081 2100.

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