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Outreach and Efficiency of Microfinance InstitutionsNiels HermesUniversity of Groningen - Faculty of Economics and Business Robert LensinkUniversity of Groningen - Department of Economics, Econometrics and Finance; Wageningen UR - Development Economics Group Aljar MeestersUniversity 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 working papers seriesDate posted: June 12, 2008Suggested CitationContact Information
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