Even though microfinance is expected to significantly affect macro variables such as inequality, poverty,
and human development, there has not been enough empirical study on the impact analysis at the macro
level, such as the effect of microfinance on inequality, especially in developing countries of Africa. This
chapter, therefore, provides a detailed empirical analysis of the correlation between microfinance and
inequality in West Africa sub-region. The correlation coefficient shows that although there is a positive
linear connection between the possibilities of microfinance to reduce inequality; it has not contributed
significantly to poverty reduction with the independent variables. The findings further suggest that the
most robust explanatory variables for inequality reduction are GDP per capita and democracy which are
invariably significant with positive sign. Taken together, these findings reinforce the intuition that greater
democracy and provision and expansion of financial infrastructures especially in backward countries of
the region are necessary for microfinance to thrive and contribute abundantly to inequality reduction.
Richardson, E (2019). Reducing inequality in developing countries throughMicrofinance, Any-correlation so far. Afribary.com: Retrieved February 25, 2021, from https://afribary.com/works/reducing-inequality-in-developing-countries-throughmicrofinance-any-correlation-so-far
Edeme, Richardson. "Reducing inequality in developing countries throughMicrofinance, Any-correlation so far" Afribary.com. Afribary.com, 19 Feb. 2019, https://afribary.com/works/reducing-inequality-in-developing-countries-throughmicrofinance-any-correlation-so-far . Accessed 25 Feb. 2021.
Edeme, Richardson. "Reducing inequality in developing countries throughMicrofinance, Any-correlation so far". Afribary.com, Afribary.com, 19 Feb. 2019. Web. 25 Feb. 2021. < https://afribary.com/works/reducing-inequality-in-developing-countries-throughmicrofinance-any-correlation-so-far >.
Edeme, Richardson. "Reducing inequality in developing countries throughMicrofinance, Any-correlation so far" Afribary.com (2019). Accessed February 25, 2021. https://afribary.com/works/reducing-inequality-in-developing-countries-throughmicrofinance-any-correlation-so-far