Abstract

KIDO-CRUZ, Antonio; ORTIZ ZAVALA, Alberto  and  KIDO-CRUZ, María Teresa. Comparative Analysis of the Efficiency of Microfinancial Institutions in Latin America; A Data Envelopment Analysis (DEA). Econ: teor. práct [online]. 2022, n.57, pp.121-137.  Epub Sep 05, 2022. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/572022/ortiz.

The objective of this paper is to evaluate the technical efficiency of microfinance institutions in Latin America, using parametric and non-parametric methods, and show which institutions are the most efficient. The stochastic frontier model (SFA) and the deterministic method of Data Envelopment Analysis (DEA) were used. Likewise, a Tobit linear regression analysis was carried out to identify the determinants of inefficiencies in the institutions. Data provided by the World Bank, from 2019, which is the most recent data, is analyzed. The results show that it is possible to find out the average technical efficiency of institutions, as well as determine that variables, which are the number of people hired, operating expenses, salary expenses, as well as inputs and the number of outstanding credits, affect efficiency determination.

Keywords : Social banking; efficiency; type of property; DEA; microfinance; C14.