TY - JOUR
T1 - Efficiency of Microfinance Institutions
T2 - A Data Envelopment Analysis
AU - Haq, Mamiza
AU - Skully, Michael
AU - Pathan, Shams
PY - 2010/3/1
Y1 - 2010/3/1
N2 - 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 particularly; 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. However, bank-microfinance institutions also 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.
AB - 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 particularly; 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. However, bank-microfinance institutions also 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.
KW - Africa
KW - Asia
KW - Data envelopment analysis
KW - Efficiency
KW - Latin America
KW - Micro finance institutions
UR - http://www.scopus.com/inward/record.url?scp=75949127363&partnerID=8YFLogxK
U2 - 10.1007/s10690-009-9103-7
DO - 10.1007/s10690-009-9103-7
M3 - Article
VL - 17
SP - 63
EP - 97
JO - Asia Pacific Financial Markets
JF - Asia Pacific Financial Markets
IS - 1
ER -