29 Pages Posted: 12 Jun 2008
Date Written: June 1, 2008
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.
Keywords: microfinance, outreach, efficiency, stochastic frontier analysis
JEL Classification: G21, O16, I39, C49
Suggested Citation: Suggested Citation
Hermes, Niels and Lensink, Robert and Meesters, Aljar, Outreach and Efficiency of Microfinance Institutions (June 1, 2008). Available at SSRN: https://ssrn.com/abstract=1143925 or http://dx.doi.org/10.2139/ssrn.1143925
By Roy Mersland