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A poverty outreach index and its application to microfinance

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  • Julia Paxton

    (Ohio University)

Abstract

The Foster, Greer, and Thorbecke poverty index is modified to a poverty outreach measure that incorporates both depth of outreach and scale. In an application to microfinance institutions, the use of this type of poverty outreach measure rejects the common notion that there is a necessary trade-off between client outreach and institutional sustainability. Banks and credit unions are found to have greater poverty outreach than smaller, subsidized non-governmental organizations that exclusively target the poor.

Suggested Citation

  • Julia Paxton, 2003. "A poverty outreach index and its application to microfinance," Economics Bulletin, AccessEcon, vol. 9(2), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-03i30002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Nicole Hassoun, 2010. "Another Mere Addition Paradox?: Some Reflections on Variable Population Poverty Measurement," WIDER Working Paper Series wp-2010-120, World Institute for Development Economic Research (UNU-WIDER).
    2. Hassoun, Nicole & S. Subramanian, 2010. "On Some Problems of Variable Population Poverty Comparisons," WIDER Working Paper Series 071, World Institute for Development Economic Research (UNU-WIDER).
    3. Debadutta Kumar Panda, 2017. "Impact assessment of group-based credit–lending projects with controlled project placement bias and self-selection bias," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 44(3), pages 227-238, September.
    4. Nudrat Faria Shreya, 2021. "Are Two Sources of Credit better than One?: Credit Access and Debt among Microfinance Clients in Bangladesh," Studies in Economics 2103, School of Economics, University of Kent.
    5. Samir Aguenaou & Sarah Allouch & Nada El Maliki & Jawad Abrache, 2019. "Financial Performance and Sustainability of Moroccan Microfinance Institutions: An Empirical Study," Accounting and Finance Research, Sciedu Press, vol. 8(4), pages 144-144, November.
    6. Eric Fosu Oteng-Abayie & Anthony Affram & Henry Kofi Mensah, 2018. "Corporate Governance and Efficiency of Rural and Community Banks (RCBs) in Ghana," Econometric Research in Finance, SGH Warsaw School of Economics, Collegium of Economic Analysis, vol. 3(2), pages 93-118, December.
    7. Alier Maker Ghai Duk, 2020. "Determinants of Microfinance Sustainability and Outreach to the Poor: Evidence from Microfinance Institutions in Sub-Saharan Africa," International Journal of Science and Business, IJSAB International, vol. 4(6), pages 21-43.
    8. Wijesiri, Mahinda & Yaron, Jacob & Meoli, Michele, 2017. "Assessing the financial and outreach efficiency of microfinance institutions: Do age and size matter?," Journal of Multinational Financial Management, Elsevier, vol. 40(C), pages 63-76.
    9. Subramanian, Sreenivasan, 2012. "Variable Populations and the Measurement of Poverty and Inequality," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
    10. Nicole Hassoun & Sreenivasan Subramanian, 2010. "On Some Problems of Variable Population Poverty Comparisons," WIDER Working Paper Series wp-2010-071, World Institute for Development Economic Research (UNU-WIDER).
    11. Amidou Ayinla Akangbe Fadikpe & Richard Danquah & Mohammed Aidoo & Dejene Adugna Chomen & Richard Yankey & Xie Dongmei, 2022. "Linkages between social and financial performance: Evidence from Sub-Saharan Africa microfinance institutions," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-23, March.
    12. Shakil Quayes, 2019. "Probability of Sustainability and Social Outreach of Microfinance Institutions," Economics Bulletin, AccessEcon, vol. 39(2), pages 1047-1056.
    13. Hassoun, Nicole & Subramanian, S., 2012. "An aspect of variable population poverty comparisons," Journal of Development Economics, Elsevier, vol. 98(2), pages 238-241.
    14. Shamima Nasrin & Rajah Rasiah & Angathevar Baskaran & Muhammad Mehedi Masud, 2018. "What determines the financial performance of microfinance institutions in Bangladesh? a panel data analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(3), pages 1409-1422, May.
    15. Md Aslam Mia & Lucia Dalla Pellegrina & Cheng Zhang & Sunil Sangwan, 2022. "Efficiency Wage and Productivity in the Indian Microfinance Industry: A Panel Evidence," IIM Kozhikode Society & Management Review, , vol. 11(2), pages 235-252, July.
    16. Sreenivasan Subramanian, 2012. "Variable Populations and the Measurement of Poverty and Inequality," WIDER Working Paper Series wp-2012-053, World Institute for Development Economic Research (UNU-WIDER).
    17. Wijesiri, Mahinda & Yaron, Jacob & Meoli, Michele, 2015. "Performance of microfinance institutions in achieving the poverty outreach and financial sustainability: When age and size matter?," MPRA Paper 69821, University Library of Munich, Germany.
    18. Hermes, Niels & Lensink, Robert & Meesters, Aljar, 2011. "Outreach and Efficiency of Microfinance Institutions," World Development, Elsevier, vol. 39(6), pages 938-948, June.
    19. Louis, Philippe & Seret, Alex & Baesens, Bart, 2013. "Financial Efficiency and Social Impact of Microfinance Institutions Using Self-Organizing Maps," World Development, Elsevier, vol. 46(C), pages 197-210.
    20. Issahaku Salifu, 2020. "The Influence of Geographical Coverage on the Microfinance Sustainability and Outreach in Northern Ghana," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 12(2), pages 1-82, February.

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    More about this item

    Keywords

    microfinance;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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