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Technical and Scale Efficiency of Tanzanian Saving and Credit Cooperatives

Nyankomo Marwa and Meshach Aziakpono
Authors registered in the RePEc Author Service: Meshach Jesse Aziakpono ()

No 510, Working Papers from Economic Research Southern Africa

Abstract: In measuring technical and scale efficiency of Tanzanian Saving and Credit Cooperatives we used a sample of 103 audited financial statements during 2011. Data envelopment analysis was employed to explore the efficiency scores. The results show that average scores are 42%, 52% and 76% for technical, pure technical and scale efficiencies respectively. Since most of the inefficiencies are either technical or scale in nature, the study recommends increasing the operating scale for smaller firms. Firms operating beyond the optimal scale may need to downsize. Also the managers from technically inefficient firms should reduce the waste of the productive resources by utilizing their inputs more efficiently.

Keywords: Efficiency; Saving and Credit Cooperatives; data envelopment analysis; Tanzania (search for similar items in EconPapers)
JEL-codes: C5 D2 G21 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2015
New Economics Papers: this item is included in nep-afr and nep-eff
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Journal Article: Technical and scale efficiency of Tanzanian saving and credit cooperatives (2016) Downloads
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