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Microfinance efficiency trade-offs and complementarities

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  • Samuel Kobina Annim

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.

Suggested Citation

  • Samuel Kobina Annim, 2010. "Microfinance efficiency trade-offs and complementarities," Global Development Institute Working Paper Series 12710, GDI, The University of Manchester.
    • Handle: RePEc:bwp:bwppap:12710
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    File URL: http://hummedia.manchester.ac.uk/institutes/gdi/publications/workingpapers/bwpi/bwpi-wp-12710.pdf
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    1. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos & Mar Molinero, Cecilio, 2007. "Microfinance institutions and efficiency," Omega, Elsevier, vol. 35(2), pages 131-142, April.
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    Cited by:

    1. Akpalu, Wisdom & Alnaa, Samuel Erasmus & Aglobitse, Peter B., 2012. "Access to microfinance and intra household business decision making: Implication for efficiency of female owned enterprises in Ghana," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 513-518.
    2. Fall, François & Akim, Al-mouksit & Wassongma, Harouna, 2018. "DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis," World Development, Elsevier, vol. 107(C), pages 176-188.
    3. Filiz Giray & Mehmet Çınar, 2017. "The Impact on Unemployment of Social Security Contributions: the Empiricial Analysis in Turkey," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 2, September.

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