The Microfinance Review

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Analysis of Productivity in Indian Microfinance Institutions Using Malmquist Approach


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1 Department of Commerce University of Science and Technology, Meghalaya, India
     

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This paper aims to examine total factor productivity (TFP) change in the Indian Microfinance Institutions (MFIs) using a balanced panel data of 380 observations of 38 MFIs operating over a time period of 10 years. The selection of input and output for the study was based on the sustainability aspect of MFIs. Results indicate that the TFP of the MFIs as a whole experienced an average annual increase of 1.4% during the study period. Further decomposition of TFP growth reveals that technological upgradation in the industry accounted for nearly two-thirds of TFP increase and technical efficiency for the remaining.

Keywords

Productivity Change, Malmquist Productivity Index, Indian MFIs.
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  • Analysis of Productivity in Indian Microfinance Institutions Using Malmquist Approach

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Authors

Santa Kar
Department of Commerce University of Science and Technology, Meghalaya, India

Abstract


This paper aims to examine total factor productivity (TFP) change in the Indian Microfinance Institutions (MFIs) using a balanced panel data of 380 observations of 38 MFIs operating over a time period of 10 years. The selection of input and output for the study was based on the sustainability aspect of MFIs. Results indicate that the TFP of the MFIs as a whole experienced an average annual increase of 1.4% during the study period. Further decomposition of TFP growth reveals that technological upgradation in the industry accounted for nearly two-thirds of TFP increase and technical efficiency for the remaining.

Keywords


Productivity Change, Malmquist Productivity Index, Indian MFIs.

References