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Outreach and Efficiency of Microfinance Institutions

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  • Hermes, Niels
  • Lensink, Robert
  • Meesters, Aljar

    (Groningen University)

Abstract

This paper uses stochastic frontier analysis (SFA) to examine whether there is a trade-off between outreach to the poor and efficiency of microfinance institutions (MFIs). Using a sample of more than 1,300 observations, our study suggests that outreach and efficiency of MFIs are indeed negatively correlated.

Suggested Citation

  • Hermes, Niels & Lensink, Robert & Meesters, Aljar, 2008. "Outreach and Efficiency of Microfinance Institutions," Research Report 08002, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  • Handle: RePEc:gro:rugsom:08002
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