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New approaches to measure the social performance of microfinance institutions (MFIs)

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  • Bibi, Uzma
  • Balli, Hatice Ozer
  • Matthews, Claire D.
  • Tripe, David W.L.

Abstract

Outreach is a central purpose of microfinance institutions in providing access to quality financial services for large numbers of poor people. This paper critically reviews outreach indicators for microfinance institutions from prior research using a South Asian panel data set covering the period 1998 to 2013. We introduce two new ways of measuring the social objectives of MFIs, reflecting market shares, for breadth and depth of outreach. The results show that these new outreach indicators provide a better explanation of social performance of MFIs than those commonly used in prior research.

Suggested Citation

  • Bibi, Uzma & Balli, Hatice Ozer & Matthews, Claire D. & Tripe, David W.L., 2018. "New approaches to measure the social performance of microfinance institutions (MFIs)," International Review of Economics & Finance, Elsevier, vol. 53(C), pages 88-97.
  • Handle: RePEc:eee:reveco:v:53:y:2018:i:c:p:88-97
    DOI: 10.1016/j.iref.2017.10.010
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    Cited by:

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    2. Wei Xu & Hongyong Fu & Huanpeng Liu, 2019. "Evaluating the Sustainability of Microfinance Institutions Considering Macro-Environmental Factors: A Cross-Country Study," Sustainability, MDPI, vol. 11(21), pages 1-22, October.
    3. Solomon Bizuayehu Wassie & Hitoshi Kusakari & Masahiro Sumimoto, 2019. "Performance of Microfinance Institutions in Ethiopia: Integrating Financial and Social Metrics," Social Sciences, MDPI, vol. 8(4), pages 1-13, April.
    4. Fall, François Seck & Tchakoute Tchuigoua, Hubert & Vanhems, Anne & Simar, Léopold, 2022. "Investigating the unobserved heterogeneity effect on microfinance social efficiency," LIDAM Discussion Papers ISBA 2022010, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    5. Anirban Pal & Piyush Kumar Singh, 2021. "Do socially motivated self‐help groups perform better? Exploring determinants of micro‐credit groups’ performance in Eastern India," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(1), pages 119-146, March.

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    More about this item

    Keywords

    Microfinance institutions; Social performance; Performance ratios;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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