Microcredit Governance Efficiency
Albanian Job
DOI:
https://doi.org/10.14666/2194-7759-11-2-006Keywords:
Microcredit, Financial efficiency, Social efficiency, Tobit Regression, Albanian microfinanceAbstract
Albanian microfinance sector, in particular microcredit, has experienced modest development in recent years, although having the objective (moreover shared at the EU level) of the fight against social and financial exclusion, self-employment promotion, and small businesses support. Microcredit represents a lifeline or starting point for small entrepreneurs or start-ups to access credit, which is impossible otherwise. Thus, it provides a start-up or survival opportunity for people and businesses that would not have vital space in different circumstances. An instrument widely used in Western Countries, therefore, to be replicated mainly in developing countries such as Albania to allow more favorable conditions for credit access and consequently more economic and social growth. This paper aims to provide an assessment of the financial and social efficiency of the microfinance sector and, in particular, of Albanian microcredit. This evaluation is carried out using DEA (Data Envelopment Analysis) method through secondary data obtained from financial institutions operating in Albania. The analysis highlights the noticeable financial and social inefficiencies. This study clearly points out the greater attention of microcredit institutions toward financial objectives (and less to social ones).
Downloads
References
Amore M. D., Murtinu S. (2021).Tobit models in strategy research: Critical issues and applications. Global Strategy Journal, 11, 331-355. https://doi.org/10.1002/gsj.1363
Armone M., Pellegrini C.B., Messa A., Pellegrini L., Sironi E. (2012). Microfinance institutions in Africa, Asia, and Latin America: an empirical analysis of operational efficiency, institutional context and cost. International Journal of Economic Policy in Emerging Economies, 5(3), 255-271.
Autoriteti i Mbikqyrjes Financiare (2020). Raporti vjetor i Mbikqyrjes 2020. AMF ed., www. amf.gov.al.
Autoriteti i Mbikqyrjes Financiare (2019). Raporti vjetor i Mbikqyrjes 2019. AMF ed., www. amf.gov.al.
Autoriteti i Mbikqyrjes Financiare (2018). Raporti vjetori i Mbikqyrjes 2018. AMF ed., www. amf.gov.al.
Autoriteti i Mbikqyrjes Financiare (2017). Raporti vjetor i Mbikqyrjes 2017. AMF ed., www. amf.gov.al.
Balkenhol, B. (2007). Efficiency and Sustainability in Microfinance. In B. Balkenhol (eds), Microfinance and Public Policy. International Labour Organization (ILO) Century Series (pp. 3-23). Palgrave Macmillan, London. https://doi.org/10.1057/9780230300026_1
Banka e Shqiperise (2020). Raporti vjetor i Mbikqyrjes 2020. Banka e Shqiperise ed. www.bankofalbania.org.
Banka e Shqiperise (2019). Raporti vjetor i Mbikqyrjes 2019. Banka e Shqiperise ed. www.bankofalbania.org
Banka e Shqiperise (2018). Raporti vjetor i Mbikqyrjes 2018. Banka e Shqiperise ed. www.bankofalbania.org
Banka e Shqiperise (2017). Raporti vjetor i Mbikqyrjes 2017. Banka e Shqiperise ed. www.bankofalbania.org
Banka e Shqiperise (2016). Raporti vjetor i Mbikqyrjes 2016. Banka e Shqiperise ed. www.bankofalbania.org.
Banker R. D., Charnes A., Cooper W.W. (1984).Some models for estimating technical and scale inefficiences in Data Envelopment Analysis. Management Science, 30(9), 1078-1092. ISSN: 0025-1909.
Baseem B. S. (2008). Efficiency of microfinance institutions in the Mediterranean: An application of DEA. Transition Studies Review, 15(2), September 2008, 343–354. ISSN 1614-4007.
Berguiga I., Said Y., Adair P. (2020). The social and financial performance of Microfinance institutions in the MENA region: Do Islamic institutions perform better. Journal of International Development, 32(7), 1075-110. ISSN 1099-1328.
Bisceglia, M. (2020).Systematic Risk Assessment in non-listed Banks. Evolution Journal of life Sciences and Society, 1(1), 54-64. ISSN 2708-678X.
Bisceglia, M. (2018). Il management di una Banca, nella dinamica dei tassi di interesse. In E. Toma (Ed.), Economia, istituzioni, etica e territorio. Casi di studio ed esperienze a confronto (pp. 342-352). Franco Angeli, Milano, ISBN 978-88-917-7938-0
Chase R. B., Jacobs R.F., Aquilan J. N. (Ed.). (2012). Operations Management nella produzione e nei servizi. McGraw-Hill Education.
Charnes A., Cooper W., Rhodes E. (1978).Measuring the efficiency of decision-making units. European Journal of Operational Research, 2(6), 429-444. ISSN 0377 – 2217.
Cooper, W.W., Seiford, L.M., Zhu, J. (2011). Data Envelopment Analysis: History, Models, and Interpretations. In Cooper, W., Seiford, L., Zhu, J. (Eds.), Handbook on Data Envelopment Analysis (pp. 1-39). International Series in Operations Research & Management Science, vol 164. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-6151-8_1
Cooper W.W., Tone K., Seiford L.M. (2006). Introduction to data envelopment analysis and its uses: with DEA-Solver software and references. Springer New York, NY. https://doi.org/10.1007/0-387-29122-9
Curri V. (2015). The Efficiency of Microfinance Institutions in Albania (Publishedmaster’s thesis). Epoka University, Tirana, Albania.
Delija A. (2017). The financial performance of MFIs in Albania. Journal of Educational and Social Research, 7(2), 147-152. ISSN: 2239-978X
Diamond A. M., Medewitz J.N. (1990). Use of data envelopment analysis in an evaluation of the DEEP Program for economic education. The Journal of Economic Education, 21(3), 337-354. https://doi.org/10.1080/00220485.1990.10844680
Efendic V., Hadziahmetovic N. (2017). The social and financial efficiency of microfinance institutions: the case of Bosnia and Herzegovina. Southeast European Journal of Economics and Business; 12(2), 85–101. ISSN: 1840118X.
Emrouznejad A., Yang G. (2017). A survey and analysis of the first 40 years of scholarly literature in DEA: 1987 – 201. Socio-Economic Planning Sciences, 60(4), 1 – 5. ISSN: 0038-0121
Fall F., Akim A. M., Wassongma H. (2018). DEA and SFA research on the efficiency of microfinance institutions: A meta-analysis. World Development, 107(C), 176–188. ISSN: 0305 – 750X.
Gannon M. (2005). Regulation and Supervision of Albania’s Microfinance Industry. Essays on regulation and supervision, 12, IRIS Center.
Gutiérrez-Nieto B., Serrano-Cinca C., Molinero C.M. (2009). Social efficiency in Microfinance institutions. Journal of the Operational Research Society, 60(1), , 104-119. ISSN: 0160-5682.
Hermes N., Lensink R., Meesters A. (2008). Outreach and efficiency of microfinance institutions. World Development, 36(5), 938–948. ISSN: 0305 – 750X.
Hoxhaj R. (2010). Regulation and supervision of microfinance in Albania. Business and Economic Horizons, 2(2), 75-81. ISSN: 1804-1205.
Ji Y-B., Lee C. (2010). Data envelopment analysis. The Stata Journal; 10(2), 267–280. ISSN: 1536867X
Kola F. (2017). Measuring the Impact of Microcredit Programs in Albania (1st Ed.). Cambridge Scholars Publishing, ISBN: 144382304X.
Kola F., Cerpja T., (2018). Microfinance and Economic Growth in Albania. Fourth international scientific conference ERAZ 2018, 125 – 136.
Lebovics M., Hermes N., Hudon M. (2016). Are financial and social efficiency mutually exclusive? A case study of Vietnamese microfinance institutions. Annals of Public and cooperative Economics, 87(1), 55–77. ISSN: 1467-8292
Louis P., Seret A., Baesens B. (2013). Financial efficiency and social impact of microfinance institutions using self-organizing maps. World Development, 46(6), 197–210. ISSN: 0305 – 750X.
Matousek R., Dasci S., Sergi B.S. (2008). The efficiency of the Turkish banking system during 2000 – 200. International Journal of Economic Policy in Emerging Economies, 1(4), 341-355.
Muharremi O., Madani F., Pelari E. (2018). Evaluating the Impact of Microfinance at the Individual Level in Albania, particularly in the Region of Vlora and Fier. Journal of Economics and Management Sciences, 1(1), 143 – 155. ISSN: 2576-3008.
Pires F. (2019). Non-banks in the EU: ensuring a smooth transition to a Capital Markets Union. SUERF Policy Note, 103, 1 – 18.
Pytkowska J. (2020). Microfinance in Europe: Survey Report 2020 edition, European Microfinance Network ed., www.european-microfinance.org.
Qendra Kombetare e Biznesit, https://qkb.gov.al/kerko/kerko-ne-regjistrin-tregtar/kerko-per-subjekt/
Ramanathan R. (2003). An introduction to data envelopment analysis: A tool for performance measurement. SAGE, New Delhi. ISBN: 076199761X
Regina, F. & Bisceglia, M. (2020). A-KA Model: an Optimization of the Stock’s Portofolio. Zagreb International Review of Economics and Business, 23(2), 21-40. https://doi.org/10.2478/zireb-2020-0012
Sexton, T.R. (1986). The Methodology of Data Envelopment Analysis in Silkman, R.H. (ed.). Measuring Efficiency: An Assessment of Data Envelopment Analysis. San Francisco: JosseyBass.
Sufian F., Habidullah M.S. (2009). Non-traditional activities and bank efficiency: empirical evidence from the Chinese banking sector during the post-reform period. International Journal of Economic Policy in Emerging Economies, 2(2), 107-132.
Shalari O., Laho E., Gumeni A. (2015). The asymmetry and fractional integration of the unemployment rate in Albania. International Journal of Economic Policy in Emerging Economies, 8(3), 229-244.
Widiarto I., Emrouznejad A. (2015). Social and financial efficiency of Islamic microfinance institutions: A Data Envelopment Analysis application. Socio-Economic Planning Sciences; 50(C), 1-17. https://doi.org/10.1016/j.seps.2014.12.001
Wijesiri M., Viganò L., Meoli M. (2015). Efficiency of microfinance institutions in Sri Lanka: A two-stage double bootstrap DEA approach. Economic Modelling, 47(C), 74–83. https://doi.org/10.1016/j.econmod.2015.02.016
Published
How to Cite
Issue
Section
The authors when submitting their papers endorse and give permission as well to the Publisher Transition Academia Press to publish the article/paper in print and/or electronic format. Article/paper is defined as the final, definitive, and citable Version of Record, and includes the accepted manuscript in its final form, including the abstract, text, bibliography, and all accompanying tables, illustrations, data.
If/when an article is accepted for publication, Author will be asked to transfer copyright of the article to Transition Academia Press. Transition Academia Press will retain copyright of all published material and reserves the right to re-use any such material in any print and/or electronic format. Author willing to retain their copyright from the Editors might request a fair condition, on the base of a bilateral agreement.
