Productivity and Efficiency Measurement Models: Identifying the Efficacy of Techniques for Financial Institutions in Developing Countries

Abstract

The concepts of productivity and efficiency have received a great deal of attention in many countries and organisations and by individuals in recent years. In any country, the growth of productivity and efficiency affects national income and inflation. In recent years, small financial institutions (SFIs) have become the most favoured option for poverty alleviation in developing countries. The efficiency of these institutions is highlighted in all aspect of stakeholders? of these institutions recently, due to the collapse of several financial institutions. Many different approaches have been applied by many researchers to the measurement of productivity and efficiency changes in various types of institutions but there is no consensus of opinion on the best measurement method and many measurement obstacles remain. The aim of this paper is to review the literature dealing with concepts of productivity and efficiency and to review various techniques used in measurement techniques of these constructs directions are given for future research.