Microfinance in Vietnam

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Author(s)
Nghiem, Son Hong
Coelli, T.
Rao, P.
Griffith University Author(s)
Year published
2013
Metadata
Show full item recordAbstract
A large amount of donor money and government money is
spent on microfinance programs in developing countries around the
world. However, there is very little quantitative research available on the
relative efficiency of these programs. This research investigates the
efficiency of the microfinance industry in Vietnam through a survey of
46 schemes in the north and the central regions. Data Envelopment
Analysis (DEA) methods are used to assess the technical efficiency and
scale efficiency of the microfinance schemes. Given the lack of previous
studies in this industry, we review the various approaches to variable
selection used ...
View more >A large amount of donor money and government money is spent on microfinance programs in developing countries around the world. However, there is very little quantitative research available on the relative efficiency of these programs. This research investigates the efficiency of the microfinance industry in Vietnam through a survey of 46 schemes in the north and the central regions. Data Envelopment Analysis (DEA) methods are used to assess the technical efficiency and scale efficiency of the microfinance schemes. Given the lack of previous studies in this industry, we review the various approaches to variable selection used in the financial institutions literature and amend the socalled "production" approach to accommodate the poverty reduction focus of microfinance. The empirical results reveal that the average technical efficiency scores of schemes surveyed is 80%. A second stage regression analysis is used to assess the impact of a variety of environmental variables upon the efficiency of the schemes. The age and the location of the scheme are found to have a significant influence upon efficiency.
View less >
View more >A large amount of donor money and government money is spent on microfinance programs in developing countries around the world. However, there is very little quantitative research available on the relative efficiency of these programs. This research investigates the efficiency of the microfinance industry in Vietnam through a survey of 46 schemes in the north and the central regions. Data Envelopment Analysis (DEA) methods are used to assess the technical efficiency and scale efficiency of the microfinance schemes. Given the lack of previous studies in this industry, we review the various approaches to variable selection used in the financial institutions literature and amend the socalled "production" approach to accommodate the poverty reduction focus of microfinance. The empirical results reveal that the average technical efficiency scores of schemes surveyed is 80%. A second stage regression analysis is used to assess the impact of a variety of environmental variables upon the efficiency of the schemes. The age and the location of the scheme are found to have a significant influence upon efficiency.
View less >
Book Title
Social Entrepreneurship and Microfinance
Copyright Statement
© The Author(s) 2013. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the publisher’s website for further information.
Subject
Economic Development and Growth