Social and financial efficiency of Islamic microfinance institutions:a Data Envelopment Analysis application

Article English OPEN
Widiarto, Indra ; Emrouznejad, Ali (2015)

Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing them to conventional MFIs. First, we develop a Data Envelopment Analysis (DEA) framework to measure MFIs' efficiency in its double bottom line objectives, i.e. in terms of social and financial efficiency. In the second stage non-parametric tests are used to compare the performance and identify factors that contribute to the efficiency of IMFIs and MFIs.
  • References (30)
    30 references, page 1 of 3

    Armendariz, B., & Szafarz, A. (2011). On Mission Drift in Microfinance. In B. Armendariz & M. Labie (Eds.), Handbook of Microfinance (1st ed., pp. 341-365). Singapore: World Scientific Publishing Co Pte Ltd.

    Armendariz de Aghion, B., & Morduch, J. (2005). The Economics of Microfinance. Boston: Massachusetts Institute of Technology.

    Coelli, T. J., Rao, D. S. P., O'Donnell, C. J., & Batesse, G. E. (2005). An Introduction to Efficiency and Productivity Analysis (2nd ed.). New York: Springer Science+Business Media.

    Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Hillsdale, New Jersey: Lawrence Erlbaum Associates, Publishers.

    Comim, F. (2007). Poverty Reduction through Microfinance: A Capability Perspective. In B. Balkenhol (Ed.), Microfinance and Public Policy: Outreach, Performance and Efficiency (pp. 47-59). Basingstoke: Palgrave Macmillan.

    Conning, J. (1999). Outreach, sustainability and leverage in monitored and peer-moPnitored lending. Journal of Development Economics, 60(1), 51-77. I

    Conning, J., & Morduch, J. (2011). Microfinance and Social Investment. Annual RReview of Financial Economics, 3(1), 407-434.

    Cooper, W. W., Seiford, L. M., & Zhu, J. (2004). Data Envelopment Analysis: History, Models and Interpretations. In W. W. Cooper, L. M. SeMiford, & J. Zhu (Eds.), Handbook on Data Envelopment Analysis (pp. 1-39). Dordrecht: Kluwer Academic Publishers Group.

    Di Martino, P., & Sarsour, S. (2012). Microcredit in Palestine ( 1995 - 2008 ): A Business History Perspective. Business History, 54(3), 441-461.

    Dichter, T. W. (1996). Questioning the future of NGOs in microfinance. Journal of International Development, 8(2), 259-269.

  • Similar Research Results (2)
  • Metrics
    0
    views in OpenAIRE
    0
    views in local repository
    146
    downloads in local repository

    The information is available from the following content providers:

    From Number Of Views Number Of Downloads
    Aston Publications Explorer - IRUS-UK 0 146
Share - Bookmark