scholarly journals Technical efficiency and total factor productivity in the Kazakh banking industry

2016 ◽  
Vol 66 (4) ◽  
pp. 685-709
Author(s):  
Adnan Kasman ◽  
Kamila Mekenbayeva
Keyword(s):  
Technical Efficiency ◽  
Productivity Growth ◽  
Commercial Banks ◽  
Economies Of Scale ◽  
Banking Industry ◽  
Malmquist Index ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Second Stage ◽  
Efficiency And Productivity

This paper investigates the technical efficiency and productivity of Kazakh commercial banks over the period 2000–2013. Non-parametric approaches, namely the Data Envelopment Analysis and the Malmquist index are employed to calculate technical efficiency and productivity. In addition, a second-stage regression is also estimated to identify the determinants of efficiency. The results indicate that banks in Kazakhstan operate below their optimum levels, with larger banks being more efficient than smaller ones. The results also indicate the presence of economies of scale for banks of all sizes. The efficiency of banks is found to be significantly and positively related to profitability, capitalisation, bank size, and liquidity. The results further indicate that Kazakh banks seem to have experienced a significant productivity growth over the sample period.

scholarly journals Sources Of Efficiency And Productivity Growth In The Philippine State Universities And Colleges: A Non-Parametric Approach

2011 ◽  
Vol 6 (6) ◽  
Author(s):  
Mary Caroline N. Castano ◽  
Emilyn Cabanda
Keyword(s):  
Technical Efficiency ◽  
Productivity Growth ◽  
Returns To Scale ◽  
Malmquist Index ◽  
State Universities ◽  
Factor Productivity ◽  
Universities And Colleges ◽  
Multi Stage ◽  
Dea Models ◽  
Efficiency And Productivity

This paper evaluates the efficiency and productivity growth of State Universities and Colleges (SUCs) in the Philippines. The SUCs performance is determined on the changes in total factor productivity (TFP), technological, and technical efficiency. We use two Data envelopment analysis (DEA) models for the first time in estimating the relative performance of SUCs. Firstly, the output-orientated DEA-Malmquist index is calculated from panel data of 59 SUCS over the period 1999-2003 or a total of 295 observations, and secondly, the DEA multi-stage model (input reduction) is estimated. The two DEA models are calculated using three educational outputs and three inputs. Using Malmquist Index model, findings reveal that 49 SUCs or 83 percent are efficient. The technological index shows that six (6) SUCs or 10.16 percent only shows a technological progress. In terms of total factor productivity, SUCs obtained an index score of 1.002, which implies a productivity growth. This means that 27 SUCs or 45.76 percent shows a remarkable productivity growth. The main source of productivity growth is due to technical efficiency than innovation. In general, SUCs shows a 5.2 percent technological regression over the study period. Lack of innovation in the Philippine higher institutions has a policy implication: the Philippine government should exert more efforts to provide modern teaching and learning facilities in every state school to improve its deteriorating technological performance. Furthermore, using multi-stage method, technical efficiency has an average of 95.4 percent (Constant-returns-to scale DEA) compared with 96.6 percent (Variable-returns-to scale DEA). Finally, the scale efficiency has a 98.7 percent rating. This implies that, in general, SUCs obtained a below frontier efficiency score. The new findings in this paper may give impetus to Commission on Higher Education, lawmakers or legislators, and the university administrators to adopt measures that would be beneficial to the improvement of State Universities and Colleges in terms of inefficiency and unproductive growth.

scholarly journals Efficiency and Productivity Performance of the National Private Banks in Indonesia

2007 ◽  
Vol 9 (1) ◽  
pp. 1 ◽  
Author(s):  
Mohd. Azmi Omar ◽  
M. Shabri Abd. Majid ◽  
Ronald Rulindo
Keyword(s):  
Productivity Growth ◽  
Technical Change ◽  
Banking Industry ◽  
Malmquist Index ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Efficiency Change ◽  
Private Banks ◽  
Using Data ◽  
Efficiency And Productivity

This study investigates the efficiency and productivity performance of the national private banks in Indonesia during the period of 2002-2004. The data consist of 21 national private banks including two Islamic banks. Productivity is measured by the Malmquist Index using Data Envelopment Analysis (DEA) technique. Overall, the result shows that the Total Factor Production (TFP) Index of the national private banks has considerably increased for the whole industry, in which technical change is found to be a more important source of productivity growth to the Indonesian Banking Industry compared to efficiency change. Furthermore, the result also shows that the efficiency of two Islamic banks is above the average efficiency of the national private banks.

Efficiency and productivity analysis of Indian banking industry using Hicks-Moorsteen approach

2014 ◽  
Vol 63 (1) ◽  
pp. 57-84 ◽  
Author(s):  
Supran Kumar Sharma ◽  
Raina Dalip
Keyword(s):  
Productivity Growth ◽  
Banking Sector ◽  
Banking Industry ◽  
Malmquist Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Productivity Analysis ◽  
Financial Reforms ◽  
Content Type ◽  
Efficiency And Productivity

Purpose – The purpose of this paper is to attempt to measure the performance of the Indian banking sector in terms of efficiency and productivity levels and their determinants during the post-reform period. Design/methodology/approach – The present study is a novel attempt as it has used pooled data for a duration of 15 years (i.e. 1997/1998-2010/2011) from 59 selected banks for estimating the Hicks-Moorsteen (HM) total factor productivity (TFP) index. Findings – Poor technical efficiency has experienced with scale efficiency change exerting dominant factors; whereas relatively better productivity growth has been experienced by the banks with major contributions from technical change components. The study found relatively underestimated efficiency and productivity levels by traditional data envelopment analysis-based Malmquist index. Additionally, the study brings into account the results for external and environmental determining factors contributing to the TFP growth. Originality/value – Using HMTFP indices has helped to eliminate certain drawbacks of data envelopment and provided the more elaborative decomposition of productivity growth along with their components so as to have lucid and multidimensional insights about the performance of the Indian banking industry after the initiation of financial reforms.

scholarly journals Productivity Measuring In The Czech Banking Industry

2011 ◽  
Vol 4 (12) ◽  
Author(s):  
Dimitrios Angelidis ◽  
Katerina Lyroudi ◽  
Athanasios Koulakiotis
Keyword(s):  
Data Envelopment Analysis ◽  
Technological Change ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Financial Institutions ◽  
Banking Industry ◽  
Geometric Mean ◽  
Value Added ◽  
Data Envelopment ◽  
Factor Productivity

In this paper we investigate the productivity of the Czech banking industry for the period 1996-2002. The non-parametric frontier method of data envelopment analysis (DEA) is used in order to estimate the Malmquist total factor productivity (TFP) change indices for 134 year-firm observations. Using the value added approach and calculating the geometric mean of the TFP, we find that the level of productivity of financial institutions meets a decline of 0.7%. Moreover, the technical efficiency changes (TEC) is greater than unity, while the technological change (TC) is less than unity for the Czech banks during the period 1996 -2002.

scholarly journals INTERTEMPORAL EFFICIENCY AND PRODUCTIVITY CHANGING ON TELECOMMUNICATION INDUSTRY (TI) IN ASEAN-5

2021 ◽  
Vol 6 (1) ◽  
pp. 123
Author(s):  
Dyah Wulan Sari ◽  
Lusi Sulistyaningsih ◽  
Haura Azzahra Tarbiyah Islamiya ◽  
Wenny Restikasari
Keyword(s):  
Technical Efficiency ◽  
Malmquist Index ◽  
Primary Source ◽  
Efficiency Score ◽  
Productivity Change ◽  
Telecommunication Industry ◽  
Data Envelopment ◽  
The Mean ◽  
Intertemporal Efficiency ◽  
Efficiency And Productivity

The study aims to measure the technical and intertemporal efficiency and find the primary source of productivity change on top three telecommunication firms in each country of ASEAN-5 (Indonesia, Malaysia, Thailand, Philippines, and Singapore) from 2010 to 2016. Data Envelopment Analysis (DEA) bootstrapping with 2000 iterations, DEA window, and Malmquist index are applied to calculate technical efficiency, intertemporal efficiency, and productivity change. The estimation results elucidate that, on average, the technical efficiency of firms is relatively low. On the opposite, the intertemporal efficiency results indicate that the mean efficiency score of each window is high. However, the LDW and LDP tend to be high, showing that the efficiency scores fluctuate. The Malmquist index calculation yields that technological progress possesses a significant contribution to productivity change.Keywords: Technical Efficiency, Intertemporal Efficiency, Productivity Change, Telecommunication Industry, ASEAN-5  JEL Classifications: L8, F6, O5, O1, O3

Are the best African banks really the best? A Malmquist data envelopment analysis

2016 ◽  
Vol 24 (4) ◽  
pp. 588-610 ◽  
Author(s):  
Tesfatsion Sahlu Desta
Keyword(s):  
South Africa ◽  
Data Envelopment Analysis ◽  
Total Factor Productivity ◽  
Commercial Banks ◽  
Productivity Index ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Global Finance ◽  
Content Type ◽  
Efficiency And Productivity

Purpose This paper aims to examine whether the African commercial banks selected as the best African banks by Global Finance Magazine really are the best. Design/methodology/approach Panel data envelopment analysis (DEA) was used, as well as the Malmquist total factor productivity index, to distinguish productive banks from unproductive banks. Nineteen commercial banks were selected from the 30 best African banks as identified by the Global Finance Magazine. Findings Of the 19 banks, five were found to be unproductive. Bank productivity was attributed mainly to technological change, and different methods marked different results, for example, the regional winner bank (Standard Bank of South Africa) selected by Global Finance Magazine ranked ninth in this study, whereas the Bank Windhoek Limited, Namibia, ranked first. Practical implications The study confirms the applicability of DEA for the banking industry. The model shows variability among the banks’ efficiency and productivity and provides different results to the Global Finance Magazine’s best bank selection. For example, the Standard Bank of South Africa, which is selected as the regional winner, is now ranked ninth under the DEA Malmquist’s total factor productivity. Originality/value The study shows that the DEA model can be applied not only for analysing the firm’s efficiency but also for objective rating, ranking and selecting best banks.

Indian IT and ICT Industry: A Performance Analysis Using Data Envelopment Analysis and Malmquist Index

2007 ◽  
Vol 7 (2) ◽  
pp. 1850109 ◽  
Author(s):  
Somesh Mathur
Keyword(s):  
Data Envelopment Analysis ◽  
Data Base ◽  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Technical Change ◽  
Malmquist Index ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Software Firms ◽  
The Common

The present study gives an account of IT and ICT infrastructure in India and points out the reasons for the boom in the IT exports and outsourcing business today and in times to come. The article analyzes the performances of the Indian IT industry by working out the technical efficiency of the software and telecommunication firms using the mathematical model of the Data Envelopment Analysis (DEA). The DEA is a non linear programming way of calculating technical efficiency of the decision making units. The study also examines the impact of various determinants on technical efficiency of software firms and net exports across the IT firms and further examines the determinants for new technology adoption by telecommunication industries, because the success of the software firms in terms of its exports is intertwined with the performance of telecommunication industry. The study uses a Malmquist index to estimate total factor productivity (TFP) change for the common set of software firms existing between 1996 and 2006 using a prowess data base. The total factor productivity is decomposed into efficiency change (catching up phenomena) and technical change (innovations) for the common set of software firms existing between 1996 and 2006 in India. At the end the study works out the performance of the Indian ICT sector in comparison with countries which are front runners using the DEA and global information technology report 2006 data base. The study will quantify the changes needed in the relatively good Indian ICT environment and ICT readiness to increase its ICT usage among individuals, business and government. The article confirms the improvements in productivity, efficiency, and technical change of the Indian Software industry from 1996 to 2006.

scholarly journals DETERMINANTS OF TECHNICAL EFFICIENCY AND TOTAL FACTOR PRODUCTIVITY CHANGE OF THE MANUFACTURING INDUSTRY IN EAST JAVA: EFFORTS TO INCREASE PERFORMANCE AND INDUSTRIAL COMPETITIVENESS

2018 ◽  
Vol 2 (1) ◽  
pp. 22-41
Author(s):  
Imroatul Amaliyah
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Manufacturing Industry ◽  
Malmquist Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Factor Productivity ◽  
Tobit Regression ◽  
Capital Labor Ratio ◽  
Manufacture Industry

This research aims to calculate and analyze the level of technical efficiency and total factor productivity change of manufacture industry, and to examine the factors that influence the value of technical efficiency of manufacture industry in East Java. The method used for this research is Data Envelopment Analysis (DEA) and Malmquist Index with Bootstrapping approach, and Tobit regression. This research used micro data from Indonesian Large and Medium-Scale Industry Survey within the year of 2007 to 2013. The results of this research are: (1) the estimated result of DEA with bootstrapping approach using output-oriented variable return to scale (VRS) assumption shows that the level of technical efficiency of manufacture industry in East Java has been not good enough and overall, it still has the potential to increase its output to reach an efficient condition; (2) the estimated result of Tobitregression demonstrates that the level of technical efficiency of the company is influenced by the company’s size, HHI, capital labor ratio, export and types of company ownership; (3) the estimated result of Malmquist Index with Bootstrapping approach shows that theaverage of total factor productivity change (TFPCH) of manufacture industry from 2007 to 2013 hasexhibited a positive change. The main factor that affects TFPCH, in order, are technological change, efficiency change, and efficiency scale change.

scholarly journals A Study on the Efficiency and Productivity of County-Level Hospitals from the Perspective of Regional Contrast in China: Data Envelopment Analysis and the Malmquist Index

2020 ◽  
Author(s):  
Peng Li ◽  
Cunhui Wang ◽  
Nian-nian Li ◽  
Heng Wang
Keyword(s):  
Technical Efficiency ◽  
Malmquist Index ◽  
Public Hospitals ◽  
Scale Efficiency ◽  
Eastern Region ◽  
Data Envelopment ◽  
Management Innovation ◽  
County Level ◽  
Output Indicators ◽  
Efficiency And Productivity

Abstract BackgroundCounty-level public hospitals play an important role in China's medical tertiary health care network. Since a new round of medical reforms occurred in 2009, county-level public hospitals have conducted continuous exploration and reforms. To analyze the efficiency and productivity of 36 county-level public hospitals based three provinces in China.Methods.We randomly selected 12 county-level hospitals from each 3 provinces based on economic levels and regional differences in China, finally, a total of 36 county-level hospitals were chosen, and a self-made questionnaire was used to investigate hospital operations for collecting data from 2011 to 2015. 2011–2015 is the twelfth five-year period of China's national economic and social development. Four input indicators and three output indicators were selected. Data envelopment analysis and the Malmquist index methods were used to measure the efficiency and productivity by the key indicators for each region.Results.On average, four input indicators in three regions have continued to grow from 2011 to 2015. The output in the three regions is directly proportional to the upward trend in inputs. On average, the three output indicators of hospitals in the eastern region are higher than the central and western regions. The technical efficiency of county-level public hospitals in the central, eastern, and western regions of China were on an upward trend, and the number of the technical efficiency, the pure technical efficiency, and the scale efficiency values reaching 1 in the three regions was more than half, respectively. The average of total factor productivity change for 2011–2015 in the central, eastern, and western regions was 1.016, 0.997, and 0.930, respectively.Conclusions.The efficiency of the central Chinese region was mainly affected by pure technical efficiency; however, scale efficiency changed to affect the efficiency of the eastern and western hospitals in 2015. The increase in production efficiency in the central region was driven by the technical efficiency. In the future hospital management, management innovation needs to be strengthened. The decline in productivity in the eastern region was due to the decline in the technical efficiency. At present, the eastern region pays attention to management innovation, but it is necessary to be alert to the adverse consequences of the expansion of hospital scale. The decline in productivity in the western region was due to the decline in the technological efficiency and technical efficiency. The hospitals should strengthen hospital management and blind scale expansion. Financial subsidies in the western region have a significant role in promoting the development of hospitals. The internal management innovation of hospitals in the eastern region has a positive effect on the technical efficiency of hospitals. The medical reform measures in the central region have positively promoted the efficiency of hospitals.

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