Mission Dirreft and role of subsidy uncertainity in Mircorfinance Institutions of Asia
Author: Muhammad Zubair

This study sheds light on the mission drift arguments for 149 MFIs working in continent Asia over the period 2003 to 2013. Three main variables named average loan size, total number of borrowers and subsidy uncertainty are used to check mission drift. This study used panel data estimation techniques. The study finds positive and significant relationship of average loan size with average profit and cost. The study finds that increasing profit has impact on mission drift. The result indicates that reduction in cost increases outreach. As low cost is associated with small average loan size. The study also finds that high subsidy uncertainty is positively associated with high interest rate and negatively associated with the outreach of MFIs. This result suggests that subsidy must be less uncertain to avoid mission drift. The study also finds that subsidy uncertainty is positively related with the average loan size, therefore leads to drift from the mission. Supervisor:- Dr Attiya Yasmeen Javid

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Keywords : Microfinance, Mission Drift, Outreach, Subsidy Uncertainty, Sustainability
Supervisor: Attiya Yasmin Javid

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