EconPapers    
Economics at your fingertips  
 

COST‐EFFICIENCY AND OUTREACH OF MICROFINANCE INSTITUTIONS: TRADE‐OFFS AND THE ROLE OF OWNERSHIP

Gashaw Abate, Carlo Borzaga and Kindie Getnet

Journal of International Development, 2014, vol. 26, issue 6, 923-932

Abstract: The focus on achieving financial efficiency by microfinance institutions in recent years raises a natural concern on their social outcome, outreach to the poor. Using a stochastic frontier approach on sample microfinance providers in Ethiopia, this paper analysed the effect of an increasingly important efficiency requirement on the traditional social mission of microfinance. It also addressed whether the way ownership is organised and practiced affects the cost of microfinance delivery. The result indicates a trade‐off between the outreach to the poor and cost‐efficiency, suggesting the difficulty in trying to achieve the two goals simultaneously. Financial cooperatives are better in their cost containment compared with specialised microfinance institutions owned by shareholders. Copyright © 2013 John Wiley & Sons, Ltd.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:26:y:2014:i:6:p:923-932

Access Statistics for this article

Journal of International Development is currently edited by Paul Mosley and Hazel Johnson

More articles in Journal of International Development from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-11-27
Handle: RePEc:wly:jintdv:v:26:y:2014:i:6:p:923-932