A meta-analysis examining the nature of trade-offs in microfinance

Increasingly, microfinance institutions must balance both social and financial objectives, the so-called double bottom line. A growing number of studies have investigated the ability of MFIs to achieve both objectives simultaneously. From an initial sample of 3,299 articles, I synthesize 274 empirical findings from 61 studies to perform a meta-analysis on the relationship between financial and social performance. Findings suggest that studies using the Mix Market database are less likely to confirm trade-offs while articles that use efficiency indicators, employ an economic frontier methodology or are published in development journals are more likely to confirm evidence of performance trade-offs.