Journal of Risk and Financial Management Article Bottlenecks to Financial Development, Financial Inclusion, and Microfinance: A Case Study of Mauritania Mohamedou Bouasria 1,*, Arvind Ashta 2 and Zaka Ratsimalahelo 1 1 CRESE EA 3190, Université Bourgogne Franche-Comté, F-25000 Besançon, France;
[email protected] 2 CEREN EA 7477, Burgundy School of Business, Université Bourgogne Franche-Comté, F-25000 Besançon, France;
[email protected] * Correspondence:
[email protected] Received: 3 September 2020; Accepted: 8 October 2020; Published: 13 October 2020 Abstract: The objective of the study was to enhance our knowledge on institutional bottlenecks for financial development, financial inclusion, and microfinance, using Mauritania as a case study. We used a mixed-methods’ methodology that combines analysis of secondary data and an expert interview. First, a logit model with dummy independent variables was used to investigate the factors that impact the households’ access to credit, the main advantage of this model being to avoid confounding effects by analyzing the association of all variables together. Our study found that access to financial services is equal in Mauritania between men and women, but that access to credit is higher for public sector employees, educated people, and households with smaller families. Second, using principal components’ analysis, we found that the different regions of Mauritania can be divided based on unemployment, income, literacy, financial inclusion, and population density into two main dimensions, yielding four quadrants: Attractive, industrious, moderate, and resource cursed. We expected that sparsely populated countries would have less access to credit. Counterintuitively, we found that within a low-density country, people in the lowest-density regions have higher odds of getting credit.