Determinants of MFI efficiency in a context of security crisis: the case of Burkina Faso

Abstract

This article aims to identify the determinants of microfinance institutions' (MFIs) efficiency in a context of security crisis, focusing on the case of Burkina Faso. It relies on the order-m production frontier estimation method to assess MFI performance. The study's findings indicate that a higher proportion of women in leadership positions and the use of group lending improve the efficiency of MFIs. However, the intervention area, whether rural or urban, has a significant positive influence on the inefficiency of MFIs, leading to a decline in their efficiency. Furthermore, the study reveals that the positive relationship between the proportion of women in leadership roles and MFIs' efficiency reverses beyond a certain threshold. This suggests that exceeding a certain level of female representation in leadership positions may adversely affect MFIs' efficiency.

Keywords : Financial efficiency, Microfinance, Security crisis

JEL code : D61, G21, H56

Paper type : Empirical Research