The Analysisof Efficiencyand Factors Affecting Efficiency Of Microfinance Institutions Inthe Provinces Cluster Number 12 Of Thailand

Abstract

The purpose of this research was to study the efficiency of microfinance institutions(MFIs) in the Provinces Cluster Number 12 of ThailandNorth-East Thailand. There were 64 microfinance institutions in the sample. Data were analyzed by Data Envelopment Analysis: DEA, under Constant Return to Scale. The result showed that all types of MFIs had higher efficiency scores. Mega-sized MFIs had higher efficiency scores of 30.43%, large-sized MFIs had higher efficiency scores of 36.36%, and Medium-sized MFIs had higher efficiency scores of 50%, The average efficiency scores under Constant Return to Scale was 0.7511, under Variable Return to Scale. The result showed that all types of MFIs had higher efficiency scores. Mega-sized MFIs had higher efficiency scores of 43.48%, large-sized MFIs had higher efficiency scores of 39.39%, and Medium-sized MFIs had higher efficiency scores of 75%, The average efficiency scores under Variable Return to Scale was 0.7511. The findings also showed that 48 MFIs had Decreasing Return to Scale : DRS. This implied that outputs increase by less than proportional change in inputs.Ordered Probit Model was used to analyze the factors affecting the efficiency of microfinance institutions, the result showed that welfare and benefit allocation factor had a significantly positive affects on the efficiency level.