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Amr Khafagy

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PhD Student

Institute of Development Research and Development Policy
Ruhr-University Bochum
Universitätsstr. 105, Room 2.23 / 2.24 / 2.27 / 2.32
44789 Bochum

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone: +49 (0)234 / 32-26163

Fax: +49 (0)234 / 32-14294

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Research Project

Empirical Essays on the Economics of Financial Cooperatives

The three essays in this thesis focus on institutional factors that determine the development of financial cooperatives, and the role of financial cooperatives as intermediary channels that can enable the redistribution of wealth.

The first essay analyses the influence of political institutions on the development of financial cooperatives. It proposes a political economy theory where autocratic regimes deliberately oppose the development of a well-functioning financial cooperative sector to maintain their political influence, and prevent the formation of strong pressure groups that can threaten the current political status quo and reduce the governing elites' economic benefits from underdeveloped and exclusive financial sector. Using panel data from 65 developing countries from 1995–2014, the results show that democracy, political rights and civil liberties promote financial cooperative development. These results are robust in controlling for endogeneity as well as other economic and institutional factors.

The second essay examines the relationship between the development of financial cooperatives and the type of regulation that governs them, the supervisory agency responsible to monitor their activities, and the existence of a deposit insurance scheme, using panel data collected for sixty-five developing countries. Information on laws regulating financial cooperatives, the supervisory approaches adopted, and deposit insurance schemes were collected and tested against proxy indicators that represent the degree of development of the sector. Although causality is difficult to establish using only statistical methods, our results cautiously provide new empirical evidence to better understand what is best suitable for the development of financial cooperatives.

The third essay investigates the potentials of financial cooperatives to act as instruments for wealth redistribution, and their ability to channel funds from high-income populations to less wealthy people who can invest it in projects yielding high marginal returns. In this regards, as a case study, I am trying to see if the returns on Tea and Coffee crops affects the Kenyan financial cooperatives' decisions to expand their lending activities by seeking external borrowings, and if such decisions depend on the cost of external borrowings compared to interest on members' deposits, and the equity structure of the cooperatives, as well as the impact of all that on the financial cooperatives' ability to mobilize savings from their members.

Supervisor: Prof. Dr. Volker Nienhaus

Research Interests

  • Development finance
  • Cooperative economics
  • Collective decision-making
  • Institutional economics


2009: - 2014:   MSc. in Investment, Arab Academy for Science and Technology, Cairo, Egypt.
2012 - 2013:   Masters in Management of Development, University of Turin, Italy.
2004 - 2008:   BSc. in Finance and Economics, German University in Cairo, Egypt.

Work Experience

2014   Microfinance Specialist – Short-term consultant, PlaNet Finance Egypt.
2014:   Team Member for the Final Evaluation of ‘Ishraq Plus’, Save the Children, Egypt.
2013:   Microfinance Analyst, MicroSave, Lucknow, India.
2010 - 2013:   Microfinance Assistant Officer, Social Fund for Development (SFD), Egypt.
2009:   Corporate Account Officer, AlexBank (Intesa-Sanpaolo), Cairo, Egypt.


  • Khafagy, A. (2017) "Regulation, supervision and deposit insurance for financial cooperatives: an empirical investigation" In: Annals of Finance (online first)
  • Khafagy, A. (2016). Political institutions and financial cooperative development. Journal of Institutional Economics, 1-32 (link to article)
  • Khafagy, A. (2013). Towards reasonably priced microcredit: analysing Egyptian NGO-MFIs’ cost structure and financial performance. Enterprise Development and Microfinance Journal, 24(4): 328-345.

Journal Review

Reviewer of manuscripts for the "Enterprise Development and Microfinance" Journal.

How to contact us

Institute of Development Research and Development Policy
Ruhr University Bochum

Room 2.04
Universitaetsstr. 105
D-44789 Bochum

E-Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Phone:   +49-(0)234 / 32-22418
or   32-22243
Fax:   +49-(0)234 / 32-14-294

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Latest Publications

Prof. Dr. Wilhelm Löwenstein, Dr. Elkhan Richard Sadik-Zada & Mattia Ferrari: Privatization and the Role of Sub-National Governments in the Latin American Power Sector: A Plea for less Subsidiarity?, in: International Journal of Energy Economics and Policy, Volume 8, No. 1, pp. 95-103

Britta Niklas: Impact of Annual Weather Fluctuations on Wine Production in Germany, in: Journal of Wine Economics, Volume 12/2017, No. 4, pp. 436-445
Britta Niklas, Karl Storchmann & Nick Vink: Fairtrade Wine Price Dispersion in the United Kingdom, in: Journal of Wine Economics, Volume 12/2017, No. 4, pp. 446-456

Khafagy, Amr: Regulation, supervision and deposit insurance for financial cooperatives: an empirical investigation. In: Annals of Finance (online first)

More information: "Publications / New Publications"

IEE on Tour

March 11 - 26:
Dr. Gabriele Bäcker
in South Africa and Namibia for evaluation, conference and institutional visit purposes.

March 17 - 24:
Prof. Dr. Wilhelm Löwenstein and Bettina Löwenstein
in Gordon's Bay and Cape Town/South Africa for the final meeting for the EUSA_ID project

March 17 - 28:
Britta Niklas
in Gordon's Bay and Cape Town/South Africa for the final meeting for the EUSA_ID project as well as a meeting for the DAAD African Excellence Centre UWC

April 04 - 06:
Dr. Elkhan Richard Sadik-Zada
at the University of Orleans, France, presenting at the International Conference "Environmental Economics: a focus on Natural Resources"

IEE on Field Research

Raffael Beier has a research stay at the International Institute of Social Studies, The Hague/The Netherlands from mid-March to mid-May 2018.

Ruth Knoblich spends a research period for her PhD as an EUSA-ID Scholar at the University of Cape Town/South Africa from January 2017 to April 2018.

Anne Siebert is at the University of Ghana, Legon, Accra und University for Development Studies, Tamale, Ghana, from 25th February to 9th April, 2018, for field research.