Is there a trade-off between MFls' financial efficiency and outreach in macroeconomic and institutional context?

Shufang Xu; Ning  Zhu; James Copestake; Guiming Cai; Xinman Peng

doi:10.1016/j.iref.2024.103403

Is there a trade-off between MFls' financial efficiency and outreach in macroeconomic and institutional context?

Shufang Xu, Ning Zhu, James Copestake, Guiming Cai, Xinman Peng

Research output: Contribution to journal › Article › peer-review

Abstract

This paper analyses whether there is a trade-off between microfinance institutions (MFIs)’
financial efficiency and outreach in macroeconomic and institutional context. We first theoretically discuss the potential impacts of macroeconomic and institutional factors on financial efficiency of MFIs, then present empirical evidence in support of theoretical analysis. The main results show that there is a potential trade-off between MFIs’ financial efficiency and outreach when we consider the influences of macroeconomic and institutional variables on financial efficiency of MFIs.

Original language	English
Article number	103403
Number of pages	17
Journal	International Review of Economics and Finance
Volume	94
Early online date	19 Jun 2024
DOIs	https://doi.org/10.1016/j.iref.2024.103403
Publication status	Published - 31 Jul 2024

Data Availability Statement

Data will be made available on request.

Funding

This paper is supported by the projects of the National Social Science Foundation of China (No. 20BJL124) and the National Natural Science Foundation of China (No. 72073046).

Funders	Funder number
MFIs
National Office for Philosophy and Social Sciences	20BJL124
National Office for Philosophy and Social Sciences
National Natural Science Foundation of China	72073046, 71973148
National Natural Science Foundation of China

Keywords

Institutional context
MFIs' financial efficiency
Macroeconomic condition
Multi-directional efficiency analysis
Outreach

ASJC Scopus subject areas

Economics and Econometrics
Finance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1016/j.iref.2024.103403

Cite this

@article{ddcf6ad37a674f449970237c6439b3c1,

title = "Is there a trade-off between MFls' financial efficiency and outreach in macroeconomic and institutional context?",

abstract = "This paper analyses whether there is a trade-off between microfinance institutions (MFIs){\textquoteright} financial efficiency and outreach in macroeconomic and institutional context. We first theoretically discuss the potential impacts of macroeconomic and institutional factors on financial efficiency of MFIs, then present empirical evidence in support of theoretical analysis. The main results show that there is a potential trade-off between MFIs{\textquoteright} financial efficiency and outreach when we consider the influences of macroeconomic and institutional variables on financial efficiency of MFIs.",

keywords = "Institutional context, MFIs' financial efficiency, Macroeconomic condition, Multi-directional efficiency analysis, Outreach",

author = "Shufang Xu and Ning Zhu and James Copestake and Guiming Cai and Xinman Peng",

year = "2024",

month = jul,

day = "31",

doi = "10.1016/j.iref.2024.103403",

language = "English",

volume = "94",

journal = "International Review of Economics and Finance",