scholarly journals The Impact of International Trade on Central Bank Efficiency: An Application of DEA and Tobit Regression Analysis

2021 ◽  
Vol 9 (1) ◽  
pp. 223-240
Author(s):  
Qaiser Farooq Dar ◽  
Young-Hyo Ahn ◽  
Gulbadin Farooq Dar
Keyword(s):  
Regression Analysis ◽  
International Trade ◽  
Central Bank ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Tobit Regression ◽  
Bank Efficiency ◽  
Tobit Regression Analysis ◽  
The Impact

The purpose of this study is to introduce a novel methodology to measure the central bank efficiency. The data envelopment analysis (DEA) applies in the combination of three input and two output variables characterizing the economic balance in international trade.  Super-efficiency DEA model is applied for ranking & comparing the efficiency of different central banks. In contrast, the Malmquist productivity index (MPI) is used to measure the productivity change over the period of time. Further, the study is extended to quantify the impact of international trade dimension on the efficiency of the central bank by using Tobit regression analysis. Finally, based on our data analysis, we reported that the efficiency changes over the period of time and the total productivity changes significantly due to the technology shift as compared to efficiency change. Additionally, it is also observed that the central bank efficiency is impacted dramatically by the export level of the country as compared to import level, average exchange rate and GDP. It implies that the export level of the country significantly influences the performances of the central bank.

scholarly journals Cost Efficiency and Total Factor Productivity: An Empirical Analysis of Pakistan’s Insurance Sector

2016 ◽  
Vol 21 (1) ◽  
pp. 123-150
Author(s):  
Uzma Noreen ◽  
Shabbir Ahmad
Keyword(s):  
Total Factor Productivity ◽  
Malmquist Index ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Innovative Technology ◽  
Average Score ◽  
Factor Productivity ◽  
Tobit Regression ◽  
Insurance Sector ◽  
The Impact

This study uses data envelopment analysis and the Malmquist index to examine the impact of financial sector reforms on the efficiency and productivity of Pakistan’s insurance sector over the period 2000–09. Our results indicate that the sector is cost-inefficient, with an average score of 58 percent – an outcome of the inappropriate use of inputs. The Malmquist productivity index performs better, indicating an improvement in total factor productivity of about 3 percent on average. The second-stage Tobit regression analysis shows that large firms are relatively inefficient from an allocative perspective as they are unable to equate the marginal product of inputs with their factor prices. Furthermore, the results demonstrate that private firms are more efficient than public firms in the nonlife insurance sector. The empirical findings suggest that a more competitive environment, diversified products and innovative technology could improve the productivity of insurance firms in Pakistan.

scholarly journals Evaluation and investigation: the determinants of central banking efficiency

2021 ◽  
Vol 55 (2) ◽  
pp. 481-493
Author(s):  
Qaiser Farooq Dar ◽  
Ahn Young-Hyo ◽  
Gulbadin Farooq Dar
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Central Bank ◽  
Structural Equation ◽  
Stochastic Frontier Analysis ◽  
Positive Impact ◽  
Central Banking ◽  
Bank Efficiency ◽  
Frontier Analysis ◽  
The Impact

The stochastic frontier analysis is a comprehensive and accepted approach for analysing efficiency in case of the parametric functional relationship existing between production processes’ inputs with its output. Usually, in the banking industry, the relationship between the user inputs and outputs are non-deterministic. In the present study, an SFA approach is used to estimate the efficiency of top 17 Asian central banks in combining three inputs and one output. Structural equation modelling is applied to examine the impact of the country’s international trade and economic growth on its central bank efficiency. Based on the results, we have observed significant efficiency ranks between the year 2016– 2018. The technical efficiency value estimates by SFA method range from 0.236822 to 0.821864. Our calculations also suggest a positive impact of international trade on central bank efficiency compared to the economic growth of that country.

COVID-19 and Hotel Productivity Changes: An Empirical Analysis Using Malmquist Productivity Index

2021 ◽  
Author(s):  
Changhee Kim ◽  
Hee Jay Kang ◽  
Kyunghwa Chung ◽  
Kanghwa Choi
Keyword(s):  
Empirical Evidence ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Organizational Level ◽  
Productivity Change ◽  
Efficiency Change ◽  
Technological Advances ◽  
Productivity Management ◽  
Pay Cuts ◽  
The Impact

This research investigates the impact of COVID-19 on hotel productivity change using the Malmquist Productivity Index (MPI). For 26 U.S. hotel brands, productivity changes over 10 quarters from the first quarter of 2018 to the second quarter of 2020 were analyzed. After the COVID-19 outbreak, the investigated hotels’ productivity deteriorated. Decomposition revealed that, whereas technical efficiency change (EC) improved, technological change (TC) regressed, resulting in deterioration of the MPI. The investigated hotels’ EC-related practices included enhanced cleaning operations, partnering with a hygiene brand, cutting the workforce, and pay cuts. Practices related to TC included the adoption of new hygiene technology and setting a new standard at the organizational level through the formation of a global council and accreditation related to disinfection and hygiene. Our results show that though U.S. hotels are trying to improve their productivity by efficiently utilizing resources, frontier technology’s regress is decreasing productivity. Our results support the importance of investment in technology for productivity management. This research provides empirical evidence for the need for hotels to pursue technological advances to overcome the pandemic.

Health system productivity in China: a comparison of pre- and post-2009 healthcare reform

2019 ◽  
Vol 35 (3) ◽  
pp. 257-266
Author(s):  
Peipei Chai ◽  
Yuhui Zhang ◽  
Maigeng Zhou ◽  
Shiwei Liu ◽  
Yohannes Kinfu
Keyword(s):  
Health System ◽  
Capital Investment ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Productivity Change ◽  
System Productivity ◽  
Life Years ◽  
Hospital Beds ◽  
The Impact

Abstract In 2009, China launched an ambitious health system reform that combined extending social health insurance scheme with improving efficiency, access and quality of care in the country. To assess the impact of the policy on efficiency and productivity change, we investigated the country’s health system performance at provincial levels during pre- and post-reform period. Outputs were measured using multiple health outcomes (namely, non-communicable diseases free healthy life years and infant and maternal survival rates), while health expenditure, number of medical personnel and hospital beds per 1000 residents were used as proxy measures for health inputs. Changes in productivity were quantified using a bootstrap Malmquist productivity index (MPI). The analysis focused on the period between 2004 and 2015. This was to capture pre- and post-policy implementation experience and to ensure that enough time was allowed for the policy to work through. Finally, a bootstrap Tobit regression model for panel data was applied to examine the potential effects of contextual factors on productivity change. The result showed that the reform has had negative effects on productivity. Only scale efficiency had improved steadily, but the decline in the scale of technological change observed during the same period meant that the progress in scale efficiency had been masked. Better economic performance (as measured by per capita Gross Domestic Product (GDP)) and higher human resource to capital investment ratio (as measured by density of medical staff per hospital beds) tended to boost productivity growth, while population aging, low educational attainment and higher percentage of out-of-pocket (OOP) payments had adverse effects. Improving health system productivity in China requires improving financial risk protection and maintaining proper balance between human and capital investment in the country.

scholarly journals EFFICIENCY AND PRODUCTIVITY CHANGE ACROSS THE ECONOMIC SECTORS IN LITHUANIA (2000–2010): THE DEA–MULTIMOORA APPROACH

2014 ◽  
Vol 19 (Supplement_1) ◽  
pp. S191-S213 ◽  
Author(s):  
Tomas Baležentis ◽  
Algimantas Misiūnas ◽  
Alvydas Baležentis
Keyword(s):  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Data Envelopment ◽  
Economic Sectors ◽  
Services Sector ◽  
Intermediate Consumption ◽  
The Impact ◽  
Efficiency And Productivity

Reasonable strategic management requires the complex assessment of the regulated area. This study, thus, presents a multi-criteria framework for frontier assessment of efficiency and productivity across the Lithuanian economic sectors throughout 2000–2010. The data envelopment analysis was employed to estimate efficiency in terms of an output indicator (value added) and input indicators (intermediate consumption, capital consumption, and remunerations). Furthermore, the decomposition of the Malmquist productivity index enabled to describe the impact of frontier shifts and catch-up effect on the overall change in efficiency. The multi-criteria decision making method MULTIMOORA aggregated different indicators of efficiency and productivity and thus resulted in the ranking of the economic sectors. The analysis suggests that services sector was the most efficient one, whereas manufacturing was second best. Certain branches of manufacturing, namely pharmaceutical, wood, food, and furniture industry, were rather efficient.

scholarly journals Forced Mergers on Bank Efficiency and Productivity: Evidence from Semi-parametric Malmquist Productivity Index

2017 ◽  
Vol 18 (1) ◽  
pp. 19-44 ◽  
Author(s):  
Fadzlan Sufian ◽  
Fakarudin Kamarudin
Keyword(s):  
Banking Sector ◽  
Conclusive Evidence ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Bank Efficiency ◽  
Productivity Level ◽  
The Difference ◽  
Two Stages ◽  
The Impact ◽  
Efficiency And Productivity

The paper examines the impact of mergers and acquisitions on the productivity of the Malaysian banking sector. The analysis consists of two stages. Firstly, the semi-parametric Malmquist productivity index (MPI) method is applied to a [-5, +8] window to examine the efficiency and productivity of the acquiring and target banks during the pre- and post-merger periods. Secondly, as suggested by Banker and Natarajan (2008), we employ a battery of parametric and non-parametric univariate tests to examine the difference in the efficiency and productivity of the Malaysian banking sector during the pre- and post-merger periods. We find that the Malaysian banking sector has exhibited a higher total factor productivity level during the post-merger period attributed to technological progress. The empirical findings do not provide conclusive evidence on the less productive banks becoming the target for acquisitions.

scholarly journals An Analysis of Revenue Maximising Efficiency of Public Sector Banks in the Post-Reforms Period

2017 ◽  
Vol 6 (1) ◽  
pp. 111-125 ◽  
Author(s):  
Ombir Singh ◽  
Sanjeev Bansal
Keyword(s):  
Regression Analysis ◽  
Public Sector ◽  
Technical Efficiency ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Public Sector Banks ◽  
Using Data ◽  
Tobit Regression Analysis ◽  
The Impact

Abstract The paper investigates and compares the performance of the Indian public sector banks (PSBs) based on revenue maximising efficiency in the deregulation period from 2001-02 to 2012-13. Several efficiency estimates viz., overall technical efficiency, pure technical efficiency and scale efficiency of individual banks are calculated using Data Envelopment Analysis (DEA). The empirical findings indicate the presence of managerial and scale inefficiencies in the operation of the most of the PSBs. Applying the Tobit regression analysis, the paper also assesses the impact of different environmental factors, like profitability, the level of non-performing assets, size etc. on the efficiency of PSBs. It is observed that banks with high profitability, low level of non-performing assets, and relatively larger size are more technically efficient.

scholarly journals Evaluating the Performance of Agricultural Bank Management: The Impact of State Regulatory Policies

1999 ◽  
Vol 31 (3) ◽  
pp. 437-448 ◽  
Author(s):  
Bernard K.N. Armah ◽  
Timothy A. Park ◽  
C.A. Knox Lovell
Keyword(s):  
Technological Change ◽  
Scale Economies ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Efficiency Change ◽  
Regulatory Policies ◽  
Bank Management ◽  
Interstate Banking ◽  
The Impact

AbstractWe evaluate agricultural bank management performance, focusing on the impacts of interstate banking laws on productivity change. The generalized Malmquist productivity index decomposes productivity change into technological change, technical efficiency change, and change in scale economies. While managerial productivity rose from 1982 to 1991, states that adopted the most liberal interstate banking laws experienced the greatest improvement in productivity. Large agricultural banks were more efficient in states that had more liberalized interstate banking laws while small agricultural banks fared better in states with more restrictive laws.

scholarly journals Total Factor Productivity Change in Turkish Banking Sector During The Crisis Periods

2016 ◽  
Vol 5 (5) ◽  
pp. 1-18
Author(s):  
Ferda Keskin Önen ◽  
Hasan Eken ◽  
Suleyman Kale
Keyword(s):  
Total Factor Productivity ◽  
Financial Stability ◽  
Banking Sector ◽  
Productivity Loss ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Factor Productivity ◽  
Macroeconomic Conditions ◽  
The Impact

The precondition of the increase in the efficiency of the banks depends on their ability to compete. Through the banking sector with high competitive power, economic dynamism is promoted, and economic stability is ensured. The alteration in macroeconomic conditions affects the performance of the banking sector and financial stability. This study was used the malmquist productivity index  to analyze the efficiency of 19 commercial banks operating in Turkey during the period of 1990 - 2012  for intermediation and profit approach. Banks have experienced productivity loss according to both approaches in times of crisis. The efficiency of  intermediation function in the banking sector have increased owing to the regulations made ​​under the restructuring program of the Turkish banking sector and the disinflation process. The regression analysis results reveals that the impact of credit / deposit ratio, ROA, ROE and inflation rate is positive on bank’s total factor productivity. As ROE increases, banks' total factor productivity has decreased under the intermediation approach. Increase in GDP has led to increase in bank’s technical efficiency for intermediation and profit approach.

Impact of merger on efficiency and productivity : a case study of commercial banks in Malaysia

1970 ◽  
Vol 5 (1) ◽  
pp. 77
Author(s):  
Mahadzir Ismail ◽  
Saliza Sulaiman ◽  
Hasni Abdul Rahim ◽  
Nordiana Nordin
Keyword(s):  
Efficiency Score ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Data Envelopment ◽  
Master Plan ◽  
Before And After ◽  
Domestic Banks ◽  
The Impact ◽  
Efficiency And Productivity

The Financial Master Plan (2001- 2010) aims to enhance the capacity of banking industry so that higher effic iency and productivity can be reaped in the future. This study seeks to determine the impact of merger on the efficiency and productivity ofcommercial banks in Malaysia for the period 1995 until 2005. The study uses a non-parametric approach, nam ely DEA (data envelopment analysis?) to estimate the efficiency scores and to construct the Malmquist productivity index. To enable this estimation, three bank inputs and outputs are used. Amongst the findings are those banks exhibit higher efficiency score after the merger and thefo reign banks are more efficient than the local banks. Productivity of the banks is calculated in both periods, before and after the merger: The results show that, it is the local banks that have improved the most after the merger. The main source of productivity is technical change or innovation. The findings support the existing policy of having larger domestic banks in term of size.

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