The Quantity and Size of Microloans Follow Different Development Logics: Evidence from Kiva
Research paper
This paper studies how Kiva microfinance activity relates to economic development across an 84-country panel from 2013 to 2017, separating total lending volume, individual loan size, and whether Kiva operates in a country at all.
Loan size follows a significant U-shaped relationship with development level, while total lending volume shows no significant inverted-U — the two dimensions of microfinance activity are driven by different mechanisms. Kiva's country entry pattern is more nuanced than a simple middle-income peak.