Microfinance Efficiency Trade-Offs and Complementarities

Posted: 7 Oct 2010

Date Written: September 6, 2010

Abstract

This study argues that patterns, trends and drivers of the efficiency of microfinance institutions (MFIs) depend on the scope of financial sustainability measures and on MFIs’ inclination to either of the dual objectives of financial systems and outreach. A balanced panel data of 164 MFIs for the period 2004-08 is extracted from the MIX website for the study’s use. Both parametric and non-parametric efficiency estimation techniques are used. Contrary to a trade-off between financial efficiency and outreach, the latter tends to have a positive link with social efficiency. Negative effects of bureaucracies in property registration and lack of credit information on social efficiency are also observed.

Keywords: Microfinance, Financial Efficiency, Social Efficiency, Sustainability, Outreach

Suggested Citation

Annim, Samuel Kobina, Microfinance Efficiency Trade-Offs and Complementarities (September 6, 2010). Available at SSRN: https://ssrn.com/abstract=1688460

Samuel Kobina Annim (Contact Author)

University of Manchester ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

HOME PAGE: http://ssrn.com/author=1001830

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