Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia)
The involvement of Islamic Microfinance Institutions (IMFI) in building the national economy is paramount to help the poor. However, provision of access and services to lower-level households can potentially conflict with the sustainability of the institutions. This study analyses the social outrea...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Russian Academy of Sciences, Institute of Economics of the Ural Branch
2020-12-01
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| Series: | Экономика региона |
| Subjects: | |
| Online Access: | https://www.economyofregion.com/data/jarticles/3339.pdf |
| _version_ | 1797766082678751232 |
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| author | Purwanto Ina Primiana Dian Masyita Erie Febrian |
| author_facet | Purwanto Ina Primiana Dian Masyita Erie Febrian |
| author_sort | Purwanto |
| collection | DOAJ |
| description | The involvement of Islamic Microfinance Institutions (IMFI) in building the national economy is paramount to help the poor. However, provision of access and services to lower-level households can potentially
conflict with the sustainability of the institutions. This study analyses the social outreach factors that determine financial and social efficiencies. To reach the set goal and solve this issue, we used mixed methodology
combining quantitative (statistical instruments, such as Data Envelopment Analysis (DEA) and multivariate analysis) and qualitative approaches (interviews to clarify or deepen the existing information). The assessment of the dependent variables is influenced by proxies of depth, breadth, length, scope, and cost. The
results showed that the average loan instalments and the number of offices and branches significantly influence financial and social efficiency. The age of the institution only has an effect on financial efficiency.
Simultaneously, profit orientation, the amount and type of financing and the amount and type of savings
only have a high impact on social efficiency, whereas the impact of fund collection and cost per borrower is
insignificant. There is a strong positive correlation between the two dependent variables. The influence of
independent variables on financial and social efficiency is significant with the coefficient of determination
23.1274 % and 53.2941 %, respectively. |
| first_indexed | 2024-03-12T20:20:14Z |
| format | Article |
| id | doaj.art-31ee663196a64d5392e5cc98728e0b06 |
| institution | Directory Open Access Journal |
| issn | 2072-6414 2411-1406 |
| language | English |
| last_indexed | 2024-03-12T20:20:14Z |
| publishDate | 2020-12-01 |
| publisher | Russian Academy of Sciences, Institute of Economics of the Ural Branch |
| record_format | Article |
| series | Экономика региона |
| spelling | doaj.art-31ee663196a64d5392e5cc98728e0b062023-08-02T01:00:59ZengRussian Academy of Sciences, Institute of Economics of the Ural BranchЭкономика региона2072-64142411-14062020-12-0116413621376https://doi.org/10.17059/ekon.reg.2020-4-24Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia)Purwanto0Ina Primiana1Dian Masyita2Erie Febrian3President UniversityPadjadjaran UniversityPadjadjaran UniversityPadjadjaran UniversityThe involvement of Islamic Microfinance Institutions (IMFI) in building the national economy is paramount to help the poor. However, provision of access and services to lower-level households can potentially conflict with the sustainability of the institutions. This study analyses the social outreach factors that determine financial and social efficiencies. To reach the set goal and solve this issue, we used mixed methodology combining quantitative (statistical instruments, such as Data Envelopment Analysis (DEA) and multivariate analysis) and qualitative approaches (interviews to clarify or deepen the existing information). The assessment of the dependent variables is influenced by proxies of depth, breadth, length, scope, and cost. The results showed that the average loan instalments and the number of offices and branches significantly influence financial and social efficiency. The age of the institution only has an effect on financial efficiency. Simultaneously, profit orientation, the amount and type of financing and the amount and type of savings only have a high impact on social efficiency, whereas the impact of fund collection and cost per borrower is insignificant. There is a strong positive correlation between the two dependent variables. The influence of independent variables on financial and social efficiency is significant with the coefficient of determination 23.1274 % and 53.2941 %, respectively.https://www.economyofregion.com/data/jarticles/3339.pdfcosteconomic efficiencysocial efficiencyaverage loan instalmentnumber of officesageprofit orientationfund collectionamount and type of financingamount and type of savingscost per borrowerislamic microfinance institution |
| spellingShingle | Purwanto Ina Primiana Dian Masyita Erie Febrian Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia) Экономика региона cost economic efficiency social efficiency average loan instalment number of offices age profit orientation fund collection amount and type of financing amount and type of savings cost per borrower islamic microfinance institution |
| title | Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia) |
| title_full | Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia) |
| title_fullStr | Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia) |
| title_full_unstemmed | Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia) |
| title_short | Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia) |
| title_sort | alleviating poverty through islamic microfinance outreach and efficiency study on bmt and islamic cooperatives in indonesia |
| topic | cost economic efficiency social efficiency average loan instalment number of offices age profit orientation fund collection amount and type of financing amount and type of savings cost per borrower islamic microfinance institution |
| url | https://www.economyofregion.com/data/jarticles/3339.pdf |
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