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Microfinance Efficiency: Trade-Offs and Complementarities between the Objectives of Microfinance Institutions and Their Performance Perspectives

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  • Samuel Kobina Annim

    (University of Central Lancashire, Preston, UK.)

Abstract

Dans le contexte des objectifs multiples des institutions de microfinance (IMFs), cet article teste deux hypothèses. Nous soutenons, premièrement, qu’il existe un compromis entre les objectifs sociaux des IMFs et leur efficacité financière. Deuxièmement, nous considérons qu’il y a complémentarité entre l’environnement externe (informations sur le crédit, droits de propriété, développement financier) et l’efficacité sociale des IMFs. En nous appuyant sur des données de panel équilibrées relatives à 164 IMFs, couvrant la période de 2004 à 2008 et issues de la plateforme Microfinance Information Exchange, nous mobilisons des méthodes paramétriques et non paramétriques d’estimation de l’efficacité. L’étude montre que quand elles doivent être rentables, les IMFs n’atteignent pas les plus pauvres alors qu’elles arrivent à leur venir en aide quand elles ont un objectif de performance sociale. Nous constatons également que la lourdeur bureaucratique caractérisant la procédure d’enregistrement de propriété, ainsi que le manque d’informations sur la solvabilité des emprunteurs ont un effet négatif sur l’efficacité sociale des IMFs. Au vu de ce qui précède, un rôle effectif des institutions externes ainsi que l’élimination des barrières à l’information sont nécessaires pour réduire la pauvreté à travers l’intervention de la microfinance.

Suggested Citation

  • Samuel Kobina Annim, 2012. "Microfinance Efficiency: Trade-Offs and Complementarities between the Objectives of Microfinance Institutions and Their Performance Perspectives," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 24(5), pages 788-807, December.
    • Handle: RePEc:pal:eurjdr:v:24:y:2012:i:5:p:788-807
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    Cited by:

    1. Xu, Shufang & Zhu, Ning & Copestake, James & Cai, Guiming & Peng, Xinman, 2024. "Is there a trade-off between MFls' financial efficiency and outreach in macroeconomic and institutional context?," International Review of Economics & Finance, Elsevier, vol. 94(C).
    2. Debdatta Pal & Subrata K. Mitra, 2018. "The efficiency of microfinance institutions with problem loans: A directional distance function approach," Computational and Mathematical Organization Theory, Springer, vol. 24(3), pages 285-307, September.
    3. Delaram Najmaei Lonbani & Bram De Rock, 2020. "The performance of microfinance institutions: An analysis of the local and legal constraints," Working Papers CEB 20-011, ULB -- Universite Libre de Bruxelles.
    4. Sefa Awaworyi Churchill, 2020. "Microfinance financial sustainability and outreach: is there a trade-off?," Empirical Economics, Springer, vol. 59(3), pages 1329-1350, September.
    5. B. Mak Arvin & Byron Lew (ed.), 2015. "Handbook on the Economics of Foreign Aid," Books, Edward Elgar Publishing, number 15762.
    6. Giovanna Aguilar & Jhonatan Portilla, 2020. "Determinants of Market Power in the Peruvian Regulated Microfinance Sector," Journal of Industry, Competition and Trade, Springer, vol. 20(4), pages 657-688, December.
    7. Prabhjot Kaur, 2016. "Efficiency of Microfinance Institutions in India: Are They Reaching the Poorest of the Poor?," Vision, , vol. 20(1), pages 54-65, March.
    8. Begum Ismat Ara Huq & Md. Abul Kalam Azad & Abdul Kadar Muhammad Masum & Peter Wanke & Md. Azizur Rahman, 2017. "Examining the Trade-off Between Social Outreach and Financial Efficiency: Evidence from Micro-finance Institutions in South Asia," Global Business Review, International Management Institute, vol. 18(3), pages 617-628, June.
    9. Niels Hermes & Marek Hudon, 2018. "Determinants Of The Performance Of Microfinance Institutions: A Systematic Review," Journal of Economic Surveys, Wiley Blackwell, vol. 32(5), pages 1483-1513, December.
    10. Syed Mohsin & Malik Fahim Bashir & Yasir Bin Tariq, 2018. "Outreach and Performance Analysis of Microfinance Banks in Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(3), pages 21-40, September.
    11. Hermes, Cornelis & Hudon, M., 2018. "Determinants of the Performance of Microfinance Institutions: A Systematic Review," Research Report 2018008, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    12. Maxime LEBOVICS & Niels HERMES & Marek HUDON, 2016. "Are Financial And Social Efficiency Mutually Exclusive? A Case Study Of Vietnamese Microfinance Institutions," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(1), pages 55-77, December.
    13. Mª Celia López-Penabad & José Manuel Maside-Sanfiz & Yousif Agha & Ana Iglesias-Casal, 2024. "Microfinance Institutions and Corporate Social Responsibility. A scientometric study," Future Business Journal, Springer, vol. 10(1), pages 1-25, December.
    14. Liu, Aiping & Urquía-Grande, Elena & López-Sánchez, Pilar & Rodríguez-López, Ángel, 2022. "How technology paradoxes and self-efficacy affect the resistance of facial recognition technology in online microfinance platforms: Evidence from China," Technology in Society, Elsevier, vol. 70(C).
    15. Edgar E. Twine & Elizaphan J. O. Rao & Isabelle Baltenweck & Amos O. Omore, 2019. "Are Technology Adoption and Collective Action Important in Accessing Credit? Evidence from Milk Producers in Tanzania," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 388-412, July.
    16. Esteves, Michele & Zorn, Alexander & Baur, Ivo & Lips, Markus, 2017. "Pr - Financial Ratios As Indicators Of Economic Sustainability: Synergies And Trade-Offs For Swiss Dairy Farms," 21st Congress, Edinburgh, Scotland, July 2-7, 2017 345770, International Farm Management Association.
    17. Mahinda Wijesiri & Almudena Martínez-Campillo & Peter Wanke, 2019. "Is there a trade-off between social and financial performance of public commercial banks in India? A multi-activity DEA model with shared inputs and undesirable outputs," Review of Managerial Science, Springer, vol. 13(2), pages 417-442, April.

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