Outreach and Efficiency of Microfinance Institutions

This paper uses stochastic frontier analysis to examine whether there is a trade-off between outreach to the poor and efficiency of microfinance institutions (MFIs). We find convincing evidence that outreach is negatively related to efficiency of MFIs. More specifically, we find that MFIs that have...

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Bibliographic Details
Published in:World development 2011-06, Vol.39 (6), p.938-948
Main Authors: Hermes, Niels, Lensink, Robert, Meesters, Aljar
Format: Article
Language:English
Subjects:
bank efficiency
cost efficiency
Development finance
econometric models
Economic efficiency
Efficiency
Financial institutions
loans
Low income groups
Microfinance
microfinance outreach sustainability
outreach
Outreach programs
Poverty alleviation
Stochastic models
Stochastic processes
Studies
Sustainability
technical efficiency
Trade-off
Tradeoff analysis
Women
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