Ownership and technical efficiency of microfinance institutions: Empirical evidence from Latin America

Roselia Servin Juarez, Robert Lensink and Marrit van den Berg

Journal of Banking & Finance, 2012, vol. 36, issue 7, 2136-2144

Abstract: By using stochastic frontier analysis, this article examines the technical efficiency of different types of microfinance institutions in Latin America. In particular, it tests whether differences in technical efficiency, both intra- and interfirm, can be explained by differences in ownership. With a focus on non-governmental organizations, cooperatives and credit unions, non-bank financial intermediaries, and banks, the data set contains 1681 observations from a panel of 315 institutions operating in 18 Latin American countries. The results show that non-governmental organizations and cooperatives have much lower interfirm and intrafirm technical efficiencies than non-bank financial intermediaries and banks, which indicates the importance of ownership type for technical efficiency.

Keywords: Microfinance; Efficiency; Technology; Stochastic frontier; Ownership type; Latin America (search for similar items in EconPapers)
JEL-codes: D24 G21 L31 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (93)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:36:y:2012:i:7:p:2136-2144

DOI: 10.1016/j.jbankfin.2012.03.018

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