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Data on Economic Modelling Reported by B.S. Bassem and Colleagues (Total factor productivity change of MENA microfinance institutions: A Malmquist...

July 4, 2014



Data on Economic Modelling Reported by B.S. Bassem and Colleagues (Total factor productivity change of MENA microfinance institutions: A Malmquist productivity index approach)

By a News Reporter-Staff News Editor at Economics Week -- Current study results on Economic Modelling have been published. According to news reporting from Gafsa, Tunisia, by VerticalNews editors, the research stated, "The main purpose of this paper is to investigate productivity changes of 33 Middle East and North Africa microfinance institutions over the period of 2006-2011 by using the Malmquist productivity index (MPI) method and a balanced panel dataset of 198 observations. The empirical findings indicate that the microfinance industry has reported overall productivity regress in the study period even though all the MENA MFIs have positive TFP growth with the exception of the year 2010-2011."

The news correspondents obtained a quote from the research, "In addition, our study indicates that over the period the Malmquist productivity change experienced by the MENA microfinance industry as a whole has averaged 4.9% annually which was mainly attributed to technical efficiency change. The study reveals also that the industry as a whole has exhibited a decline in technological change (2.9% decrease over the period) and suggested that there has been a deterioration in the performance of the best practicing MFIs. By decomposing the Malmquist index, the result showed that during the study period the MENA MFIs have experienced mainly an increment of pure technical efficiency (improvement in management practices) rather than an improvement in optimum size."

According to the news reporters, the research concluded: "Overall, an essential strategic implication for the MENA microfinance industry is that they need to pursue a technological progress in order to meet the dual objectives of reaching many poor people and financial sustainability."

For more information on this research see: Total factor productivity change of MENA microfinance institutions: A Malmquist productivity index approach. Economic Modelling, 2014;39():182-189. Economic Modelling can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Economic Modelling - www.elsevier.com/wps/product/cws_home/30411)

Our news journalists report that additional information may be obtained by contacting B.S. Bassem, Higher Inst Business Adm Gafsa, Gafsa, Tunisia.

Keywords for this news article include: Gafsa, Africa, Tunisia, Economic Modelling

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Source: Economics Week


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