ARE FINANCIAL AND SOCIAL EFFICIENCY MUTUALLY EXCLUSIVE? A CASE STUDY OF VIETNAMESE MICROFINANCE INSTITUTIONS

Maxime Lebovics · Niels Hermes · Marek Hudon

101 citations0/0 files storedAnnals of Public and Cooperative Economics

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Microfinance and Financial Inclusion Banking stability, regulation, efficiency Efficiency Analysis Using DEA

Abstract

A major debate in microfinance focuses on the existence of a trade-off between the financial sustainability of microfinance institutions (MFIs) and their outreach to poor clients. This paper adds to this debate by analyzing whether financial and social efficiency are mutually exclusive in a context of implicit subsidies by the state and international donors. We use data from a sample of 28 Vietnamese MFIs and apply Data Envelopment Analysis (DEA) to identify the existence of a trade-off. Our analysis shows that for Vietnamese MFIs financial and social efficiency are not related. We interpret this as evidence for the fact that there is no support to believe that there is such a trade-off. Subsidies, based on which most Vietnamese MFIs currently operate, helps them to show high financial efficiency, while at the same time being able to attain their social goals. Nevertheless, this model may not be sustainable in the long-term.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 101 citations exist upstream.

References

1978Measuring the efficiency of decision making units 1984Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis 2005Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment 2001The Microfinance Revolution 2007Financial performance and Outreach: A Global Analysis of Leading Microbanks 2000THE MICROFINANCE SCHISM 2009Portfolios of the poor: how the world's poor live on $2 a day 2011Outreach and Efficiency of Microfinance Institutions

Cited by

2018A meta-analysis examining the nature of trade-offs in microfinance 2024Bank financial sustainability evaluation: Data envelopment analysis with random forest and Shapley additive explanations 2020Legal, Institutional and Financial Solutions for the Sustainable Development Strategy of Inland Waterway Transport in Vietnam

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.