Amit Kumar Bardhan, Barnali Nag, Chandra Sekhar Mishra
{"title":"Microfinance Institutions’ Efficiency and its Determinants: Evidence from India","authors":"Amit Kumar Bardhan, Barnali Nag, Chandra Sekhar Mishra","doi":"10.1177/13915614231179527","DOIUrl":null,"url":null,"abstract":"This study evaluates the financial and social efficiency of Indian Microfinance Institutions (MFIs) from 2005 to 2018 and also tries to find out the determinants of financial and social efficiency. In the first step, bias-corrected bootstrap Data Envelopment Analysis (DEA) efficiency scores for financial and social efficiency were calculated using two input and two output variables. In the second step of analysis above efficiency scores have been used as dependent variables and Seemingly Unrelated Regression (SUR) model is employed to ascertain the determinants of financial and social efficiency of Indian MFIs. The study finds that the aggregate financial efficiency of Indian MFIs is higher than the social efficiency. Over the study period, efficiency of Indian MFIs shows an increasing trend. Results of SUR suggest that as compared to Non-Banking Finance Company (NBFC) MFIs, Non-NBFC MFIs’ financial and social efficiency is better. Influence of age, scale of loan portfolio, asset quality and financial leverage on efficiency of MFIs are insignificant. This study also finds that asset size of the firm is positively associated with efficiency. Evidence from this study suggests that reform measures taken post microfinance crises has negatively affected the financial efficiency. However, social efficiency has improved during post reform period. JEL Codes: G21, C33","PeriodicalId":39966,"journal":{"name":"South Asia Economic Journal","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"South Asia Economic Journal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/13915614231179527","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This study evaluates the financial and social efficiency of Indian Microfinance Institutions (MFIs) from 2005 to 2018 and also tries to find out the determinants of financial and social efficiency. In the first step, bias-corrected bootstrap Data Envelopment Analysis (DEA) efficiency scores for financial and social efficiency were calculated using two input and two output variables. In the second step of analysis above efficiency scores have been used as dependent variables and Seemingly Unrelated Regression (SUR) model is employed to ascertain the determinants of financial and social efficiency of Indian MFIs. The study finds that the aggregate financial efficiency of Indian MFIs is higher than the social efficiency. Over the study period, efficiency of Indian MFIs shows an increasing trend. Results of SUR suggest that as compared to Non-Banking Finance Company (NBFC) MFIs, Non-NBFC MFIs’ financial and social efficiency is better. Influence of age, scale of loan portfolio, asset quality and financial leverage on efficiency of MFIs are insignificant. This study also finds that asset size of the firm is positively associated with efficiency. Evidence from this study suggests that reform measures taken post microfinance crises has negatively affected the financial efficiency. However, social efficiency has improved during post reform period. JEL Codes: G21, C33
期刊介绍：
The South Asian nations have progressively liberalized their economies in recent years in an effort to integrate with the world economy. They have also taken steps to enhance multilateral and regional economic integration. Even though the South Asian economies have grown at an average rate of more than 5 per cent over the last few years, roughly 40 per cent of their people still live below the poverty line. Hence, the South Asian region continues to face many challenges of economic and social development. The South Asia Economic Journal (SAEJ) is designed as a forum for informed debate on these issues, which are of vital importance to the people of the region who comprise one-sixth of the world’s population. The peer-reviewed journal is devoted to economic analysis and policy options aimed at promoting cooperation among the countries comprising South Asia. It also discusses South Asia’s position on global economic issues, its relations with other regional groupings and its response to global developments. We also welcome contributions to inter-disciplinary analysis on South Asia. As a refereed journal, SAEJ carries articles by scholars, economic commentators,policy-makers and officials, from both the private and public sectors. Our aim is to create a vibrant research space to explore the multidimensional economic issues of concern to scholars working on South Asia. Among the issues debated in relation to South Asia are: - the implications of global economic trends; - the issues and challenges by WTO; - approaches to industrialization and development; - the role of regional institutions such as the SAARC; - the relationship between SAARC and other regional economic groupings such as ASEAN; - the implications of economic liberalization for trade and investment in the region; - new initiatives that can be launched to enhance economic cooperation among the South Asian countries both on a bilateral and a regional basis.
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