Dynamic analysis of interest rate determinants in microfinance institutions

In this paper, we examine the interest rate of microfinance institutions in a dynamic framework in order to consider the anticipation phenomenon. The fluctuations that affect the development of MFIs are often unpredictable and may be fast. The results show an interest rate increase over time, which is more significant within cooperatives and Non-Governmental Organizations (NGOs) compared to other MFIs categories. Our results clearly show that these MFI types suffer from more exogenous shocks.