Efficiency of Microfinance Institutions: A Data Envelopment Analysis

This study examines the cost efficiency of 39 microfinance institutions across Africa, Asia and the Latin America using non-parametric data envelopment analysis

Mamiza Haq

2009

Scholarcy highlights

  • This study examines the cost efficiency of 39 microfinance institutions across Africa, Asia and the Latin America using non-parametric data envelopment analysis
  • Our findings show non-governmental microfinance institutions ; under production approach, are the most efficient and this result is consistent with their fulfillment of dual objectives: alleviating poverty and simultaneously achieving financial sustainability
  • Bank-microfinance institutions outperform in the measure of efficiency under intermediation approach. This result reflects that banks are the financial intermediaries and have access to local capital market
  • It may be possible that bank-microfinance institutions may outperform the non-governmental microfinance institutions in the long run

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