Show simple item record

dc.contributor.authorKar, AKen
dc.contributor.authorRahman, Sen

© 2018 Economic Society of Australia, Queensland Applying the Färe–Primont index, this paper computes the total factor productivity (TFP) index for microfinance institutions (MFIs) in terms of its six individual components: technical change, technical, scale and mix efficiency changes and residual scale and residual mix efficiency changes. We use panel data of 342 MFIs from 61 countries covering the period 2003–2013. Results show that MFIs are operating at a low level of productivity with an overall annual rate of decline in TFP of 1.7 percent. Although technical progress, technical efficiency change and mix efficiency change components of TFP have increased over the study period, overall, TFP actually declined over time due to declining scale efficiency, residual scale-efficiency and/or residual mix efficiency changes. We found variations in regional performance with Sub-Saharan Africa experiencing the highest decline in TFP despite improvements in technical and mix efficiency changes. In contrast, Eastern Europe, Central Asia and South Asian regions have experienced a growth in TFP. Policy implications of these results are that MFIs should continue to pursue technical progress and aim to improve technical, scale and mix efficiency components by reallocating resources optimally. As well, MFIs should operate at an optimal scale and derive economies of scope by changing input and output mixes.

dc.publisherThe Economic Society of Australia Inc.en
dc.titleChanges in total factor productivity and efficiency of microfinance institutions in the developing world: A non-parametric approachen
dc.typeJournal Article
plymouth.journalEconomic Analysis and Policyen
plymouth.organisational-group/Plymouth/Faculty of Science and Engineering
plymouth.organisational-group/Plymouth/Faculty of Science and Engineering/School of Geography, Earth and Environmental Sciences
plymouth.organisational-group/Plymouth/REF 2021 Researchers by UoA
plymouth.organisational-group/Plymouth/REF 2021 Researchers by UoA/UoA06 Agriculture, Veterinary and Food Science
plymouth.organisational-group/Plymouth/Research Groups
plymouth.organisational-group/Plymouth/Research Groups/Centre for Research in Environment and Society (CeRES)
dc.rights.embargoperiodNot knownen
rioxxterms.typeJournal Article/Reviewen

Files in this item


This item appears in the following Collection(s)

Show simple item record

All items in PEARL are protected by copyright law.
Author manuscripts deposited to comply with open access mandates are made available in accordance with publisher policies. Please cite only the published version using the details provided on the item record or document. In the absence of an open licence (e.g. Creative Commons), permissions for further reuse of content should be sought from the publisher or author.
Theme by 
@mire NV