References of "Baraton, Pierrick"
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See detailDo banks and microfinance institutions compete? Microevidence from Madagascar
Leon, Florian UL; Baraton, Pierrick

in Economic Development and Cultural Change (in press)

This paper examines whether the loan strategy of a microfinance institution is shaped by the entry of a bank. Specifically, we investigate whether the distance between a borrower of a microfinance ... [more ▼]

This paper examines whether the loan strategy of a microfinance institution is shaped by the entry of a bank. Specifically, we investigate whether the distance between a borrower of a microfinance institution and the closest bank influences loan conditions provided by the microfinance institution. We use an original panel dataset of 32,374 loans granted to 14,834 borrowers provided by one of the largest microfinance institutions in Madagascar between 2008 and 2014. We find that the closer a bank is located to a given MFI borrower, the larger the loan obtained and the less collateral required. We also find that the effect is stronger for clients that could be more easily caught by banks (i.e., large firms and clients without a previous relationship with the MFI). [less ▲]

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See detailDo banks and microfinance institutions compete? Microevidence from Madagascar
Leon, Florian UL; Baraton, Pierrick

E-print/Working paper (2018)

In recent years, both microfinance institutions (MFIs) and banks across the world have been converging towards the financing of small enterprises with high financing needs. This paper scrutinizes whether ... [more ▼]

In recent years, both microfinance institutions (MFIs) and banks across the world have been converging towards the financing of small enterprises with high financing needs. This paper scrutinizes whether banks and MFIs compete each other as a result of recent transformations in both industries. In doing so, we study whether the loan strategy of a microfinance institution is shaped by the local presence of a bank. Specifically, we investigate whether bank proximity influences loan conditions provided by one of the largest microfinance institutions in Madagascar. We employ an original panel dataset of 32,374 loans granted to 14,834 borrowers over the period 2008-2014. We find that the closer a bank is located to a given MFI borrower, the larger the loan obtained and the less collateral required. These results are insensitive to several robustness tests for possible endogeneity of distance, sample selection issue, and alternative specifications. In addition, findings are stronger for larger and more established (older) firms in line with our hypothesis. [less ▲]

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See detailFinancial Constraint, Entrepreneurship and Sectoral Migrations
Leon, Florian UL; Baraton, Pierrick

E-print/Working paper (2016)

Using an original database of over 3,000 micro and small enterprises (MSEs) that were microfinance institution (MFI) clients in Madagascar over the period of 2008-2014, we observe that around one third of ... [more ▼]

Using an original database of over 3,000 micro and small enterprises (MSEs) that were microfinance institution (MFI) clients in Madagascar over the period of 2008-2014, we observe that around one third of these entrepreneurs switched business sectors in the first five years after starting their business. We find that the probability of an entrepreneur’s changing sectors is highly correlated with the size of the first loan obtained from the MFI. This result survives multiple robustness checks, including treatment for endogeneity and attrition. We interpret this finding in terms of financial constraint: a lack of financing prevents an entrepreneur from initially investing in his first choice sector, causing him to change sectors only when he has become financially able to do so. This result challenges the classic distinction made between ”necessity entrepreneurs” and ”opportunity entrepreneurs” and raises important questions concerning entrepreneurial talent allocation. [less ▲]

Detailed reference viewed: 99 (6 UL)