Efficiency of Microfinance Institutions in India: Evidence from Malmquist Indices
Abstract
The current study constructs a balanced panel data set on microfinance institutions in India during 2008-2012 and employs a data envelopment analysis to examine the efficiency of the institutions. The results show a decrease of 0.3 per cent in productivity during the study period. In addition, the technical efficiency change, pure efficiency change and scale efficiency attributes to the overall inefficiency of the institutions. Also, profit institutions are more efficient than non-profit institutions. Results from Tobit regressions indicate that the impact of population and GDP on the efficiency of the institutions is significant, but that of the number of microfinance institutions is not.
Published
Section
License
© Journal of Education and Development. The copyright for all articles published in this journal is retained by the authors. All articles are published under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0). This license permits use, distribution, and reproduction in any medium, whether commercial or non-commercial, provided the original work is properly cited.