The Effect of Microfinance Institutions Activities on Economic Growth in Arab Countries

Lubna Sameer Khalaf, Nahil Ism

Abstract

This paper aims to investigate the impact of Micro-Finance Institutions (MFIs) on economic growth in Arab countries. To test the effect of MFIs on economic growth in Arab countries, the paper utilizes panel data model for six Arab countries over the period 1999-2016, the choice of the sample is based on data availability. The results reveal that MFIs have no effect on improving economic growth in Arab countries. The study findings can be of special importance for policymakers and stakeholders who may benefit from these results in improving regulations and strategies to strengthen the microfinance sector as main player in the financial system in Arab countries.