Social Productivity of Microfinance Institutions: Trends & Determinants

Abstract

This research aims to examine the social productivity change and its determinants: technical change & efficiency change in Indian Microfinance institutions operating from 2011 to 2018. For the obtaining results of productivity & its components I employed the output-oriented non-parametric DEA based MPI approach. The empirical findings demonstrate that Indian MFIs experienced an average productivity gain of 2.3 percent over the research period. The reported increases in social productivity are mostly due to technical advancement, which is increasing at a pace of 3.2 percent, while efficiency is decreasing. Small MFIs show slightly higher social productivity growth than large MFIs. From the cross-sectional analysis, 2017-18 is the worst-performing year & 2015-16 is the best performing year. Most Indian MFIs need to enhance their managerial performance.