Study On Efficiency Evaluation And Influencing Factors Of International Microfinance Organizations

In order to calculate the global efficiency, financial efficiency and social efficiency of international microfinance institutions, and explore the factors that affect microfinance institutions’ efficiency, this paper choose a balanced panel of 333 international microfinance institutions from MIX between year 2008 and 2013, using data envelopment analysis(DEA) estimates productivity of the 333 microfinance institutions. Malmquist productivity index is used to analyse the productivity changes of the microfinance institustions. Tobit model is adopted to analyse the factors affecting productivity of microfinance institutions.The main conclusions in this paper are:(1) In year 2009-2013, the global efficiency of the international microfinance institutions was declining. The technical efficiency, pure technical efficiency and scale efficiency of global efficiency were all proved to be declining.(2) In year 2009-2013, the financial efficiency of international microfinance institutions was far below global efficiency and social efficiency, and flucruates greatly. The technical efficiency of financial efficiency was volatile, showing a trend of decreasing after an initial increase. Pure technical efficiency of financial efficiency of was also declining, the scale efficiency of financial efficiency first increased and then decreased.(3) In year 2009-2013, the technical efficiency and pure technical efficiency of social efficiency of international MFIs continued to decline, scale efficiency first increased and then decreased and then slowly recovered.(4) Malmquist productivity index shows that the productivity of international MFIs continued to decline in year 2009-2013. Low technological progress index caused low productivity from 2010 to 2012, and efficiency change was the major cause of productivity decrease in 2013.(5) Profit orientation, regulated status, region, methodology, outreach, type of institutions and age can affect the global efficiency, financial efficiency and social efficiency of the international microfinance institutions.This paper argues that, to further improve the financial efficiency of microfinance institutions, relevant departments should strengthen policy support and guidance. To standardize supervision, establishing a scientific and rational regulatory system is greatly appreciated. Promoting methodlogy innovation of microfinance institutions is necessary to promote efficiency of microfinance institutions.