Productivity change in microfinance institutions in SAARC region: A Malmquist productivity index approach

Purpose: Microfinance Institutions (MFIs) play vital role in developing countries. This study is dedicated to inspect the productivity change in microfinance Institutions (MFIs) in the SAARC region. Design/methodology/Approach: A panel of 85 MFIs with five diamond information status from 2003 to 2011 with annual frequency is investigated in the analysis. The methodology which we adopt is Malmquist index through DEA software. Findings: On average a positive TFP growth of MFIs in the SAARC region is documented except from 2005 to 2006 and 2007 to 2009. The efficiency of these MFIs will be helpful for completion of the financial sector and will improve the overall competence and growth. Originality/Value: We found many article related to measure the productivity change in different region but there is limited articles and research work related on SARRC region. This study has been carried out to find either Micro finance institutions are working efficiently or not.