Abstract

http://ssrn.com/abstract=1143925
 
 

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Outreach and Efficiency of Microfinance Institutions


Niels Hermes


University of Groningen - Faculty of Economics and Business

Robert Lensink


University of Groningen - Department of Economics, Econometrics and Finance; Wageningen UR - Development Economics Group

Aljar Meesters


University of Groningen - Faculty of Economics and Business

June 1, 2008


Abstract:     
This paper uses stochastic frontier analysis (SFA) to examine whether there is a trade-off between outreach to the poor and efficiency of microfinance institutions (MFIs). Using a sample of more than 1,300 observations, our study suggests that outreach and efficiency of MFIs are indeed negatively correlated.

Number of Pages in PDF File: 29

Keywords: microfinance, outreach, efficiency, stochastic frontier analysis

JEL Classification: G21, O16, I39, C49

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Date posted: June 12, 2008  

Suggested Citation

Hermes, Niels and Lensink, Robert and Meesters, Aljar, Outreach and Efficiency of Microfinance Institutions (June 1, 2008). Available at SSRN: http://ssrn.com/abstract=1143925 or http://dx.doi.org/10.2139/ssrn.1143925

Contact Information

Niels Hermes (Contact Author)
University of Groningen - Faculty of Economics and Business ( email )
Postbus 72
9700 AB Groningen
Netherlands
Robert Lensink
University of Groningen - Department of Economics, Econometrics and Finance ( email )
P.O. Box 800
9700 AH Groningen
Netherlands
Wageningen University and Research Center (WUR) - Development Economics Group ( email )
Hollandseweg 1
WAGENINGEN, 6706 KN
Netherlands
Aljar Meesters
University of Groningen - Faculty of Economics and Business ( email )
Postbus 72
9700 AB Groningen
Netherlands
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