scholarly journals Bank efficiency analysis of financial innovations: dea model application for the institutional concept

2021 ◽  
pp. 290-303
Author(s):  
Zohrab Ibrahimov ◽  
Sakina Hajiyeva ◽  
Vuqar Nazarov ◽  
Lamiya Qasimova ◽  
Vasif Ahadov
Keyword(s):  
Technical Efficiency ◽  
New Technologies ◽  
Value Added ◽  
Efficiency Score ◽  
Scale Efficiency ◽  
Bank Efficiency ◽  
Financial Innovations ◽  
Efficiency Decomposition ◽  
Banking Business ◽  
Banking Institutions

Globalization and digitization of the banking and financial market are well known. They are the trends of this decade-defining the context and efficiency of the banking business. Financial innovations introduced by new technologies have provided banks with the necessary utilities to seize the possibilities to tap into efficiency and competitive advantage gains. In this context, this study seeks to assess the overall efficiency of Azerbaijanian banks in adopting and utilizing financial innovation in providing financial products and services. The data envelopment analysis was applied to compute and compare the ability of financial intermediaries to adopt financial innovations via modern technologies efficiently. Based on the institutional value-added concept, the aggregate efficiency score for each of the 14 banking institutions was calculated. The inefficiency sources were derived from the overall technical efficiency decomposition into pure technical efficiency and scale efficiency. The results showed that only four banks had utilized financial innovations in the banking production process to increase their value-added during 2017-2019. Decomposition results further indicated that slight values of the overall technical inefficiency were caused by scale inefficiency. Thus, these banks' had the capacity for banking business value-added growth by 5-16% just by adjusting scales. Simultaneously, all significant deviations from the absolute overall technical efficiency caused by both pure technical efficiency and scale efficiency. Therefore, there is still much room for banking institutions to increase value-added by adjusting scales and enhancing banking operations and management.

scholarly journals Performance Assessment Based on the Relative Efficiency of Indian Opencast Coal Mines Using Data Envelopment Analysis and Malmquist Productivity Index

Energies ◽  
2020 ◽  
Vol 13 (18) ◽  
pp. 4902
Author(s):  
Biswaranjita Mahapatra ◽  
Chandan Bhar ◽  
Sandeep Mondal
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Primary Source ◽  
Efficiency Score ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Significant Difference ◽  
Using Data

Coal is the primary source of energy in India. Despite being the second-largest coal-producingcountry, there exists a significant difference in demand and production in India. In this study, the relativeefficiency of twenty-eight selected opencast mines from a large public sector undertaking coal companyin India for 2018–2019 was assessed and ranked by using data envelopment analysis (DEA). This studyused input-oriented DEA with efficiency decomposition to pure technical efficiency, technical efficiency,and scale efficiency. The result showed that 25% and 36% of mines were efficient in technical efficiencyand pure technical efficiency, respectively, whereas the eight mines scale efficiency was inefficient witha decreasing return to scale. Further, in this study, theMalmquist Productivity Index (MPI)was employedto measure the efficiency of the selected mines for three consecutive years (2016–2017 to 2018–2019).The result shows that in only three mines the efficiency is continuously improving from 2016–2017 to2018–2019, whereas in more than 20% of mines the efficiency score is decreasing. Comparing theMPIefficiency and productivity assessment throughout the years, changes in innovation and technology areincreasing from 2017–2018 to 2018–2019. Finally, the study concluded with a comprehensive evaluationof each variable with mines performance. The author formulated the strategies, which in turn help coalprofessionals to improve the efficiency of the mine.

scholarly journals Technical Efficiency of Mung Bean Producers: The Case of Myanmar

Agriculture ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 1249
Author(s):  
Phyo-Pa-Pa Aung ◽  
Ji-Yong Lee
Keyword(s):  
Technical Efficiency ◽  
Mung Bean ◽  
New Technologies ◽  
Positive Impact ◽  
Efficiency Score ◽  
Export Earning ◽  
Total Production ◽  
Tobit Regression ◽  
Access To Credit ◽  
The Government

Agriculture plays a key role in Myanmar and it is the backbone of the country’s economy. Among the major export-earning crops in Myanmar, mung bean is one of the important, and it creates many opportunities for smallholders. About 90% of the total production of mung bean is exported for overseas or border trade and has extended markets, especially China, Vietnam and EU countries. This study aims to measure the level of technical efficiency of green mung bean producers and determine the factors influencing the technical efficiency of mung bean production in Tatkon Township, Myanmar. Data from 144 farms were analyzed using a DEA model and Tobit regression. The empirical results reveal that about 46% of farmers had an efficiency score of more than 0.90, which indicates that 54% of farmers were relatively inefficient in their production. The results also show that socioeconomics factors, such as age of farmers, farmers participating in associations and soil fertility, had a significantly positive impact on technical efficiency. Gender, education, access to credit and extension services had a positive impact on the technical efficiency of mung bean production in the study area. To reduce inefficiency, the government should consider providing more services to male farmers and older farmers to improve their capacities, as well as providing an extension of services, new technologies, credit and improved variety for mung bean production.

scholarly journals BANKING SECTOR EFFICIENCY: A DEA AND TIME SERIES APPROACH

Ekonomika ◽  
2010 ◽  
Vol 89 (2) ◽  
pp. 111-119 ◽  
Author(s):  
Fadzlan Suflan
Keyword(s):  
Technical Efficiency ◽  
Banking Sector ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Bank Efficiency ◽  
New Approach ◽  
Time Series Approach ◽  
The Mean ◽  
Dea Method

The paper provides a new approach to modeling bank efficiency. Unlike previous bank efficiency studies, the present paper employs the data envelopment analysis (DEA) method on quarterly data to construct the efficiency frontiers. The Malaysian banking sector is used for a case study. The results show that the Malaysian banking sector has exhibited the mean technical efficiency of 97.3%, suggesting the minimal input waste of 2.7%. The empirical findings suggest that the pure technical efficiency outweighs the scale efficiency in determining the Malaysian banking sector’s technical efficiency. The results imply that, although the Malaysian banking sector has been efficient in managerial terms, it has been operating at a non-optimal scale of operations.p>

scholarly journals Spatial Distribution and Regional Difference of Environmental Efficiency Based on Carbon Reduction Goals: Evidence From China

2022 ◽  
Vol 9 ◽  
Author(s):  
Wenyan Pan ◽  
Muhammad Awais Gulzar ◽  
Zongjun Wang ◽  
Chensi Guo
Keyword(s):  
Technical Efficiency ◽  
New Technologies ◽  
Industrial Structure ◽  
Efficiency Index ◽  
Environmental Efficiency ◽  
Total Carbon ◽  
Scale Efficiency ◽  
Carbon Intensity ◽  
Average Growth ◽  
Carbon Reduction

China will strive to achieve carbon peak by 2030 and carbon neutralization by 2060 cooperating with the system dominated by carbon intensity control and supplemented by total carbon emission control. This paper analyzes the environmental efficiency index of China; the empirical results show that the average growth rate is 4.5% from 2006 to 2017. A further decomposition of changes on scale efficiency and pure technical efficiency indicates that the pure technical efficiency maintains a long-term growth, and scale efficiency shows a fluctuant tendency. The abovementioned changes show that various methods in China such as industrial structure adjustment and promotion of the development of high and new technologies have obtained a certain effect. From the perspectives of regional differences, the average changes of environmental efficiency in eastern, central, and western regions as well as most of provinces and cities are all on the increase. On the space layout, a trend has been presented that the average changes in central regions exceed those in eastern regions, while the average changes in western regions are comparatively lower than those in eastern regions.

Measurement of Technical and Scale Efficiency of Dairy Farms in Pune District of Maharashtra: Data Envelopment Analysis Approach

2021 ◽  
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Management Practices ◽  
Dairy Farms ◽  
Herd Size ◽  
Efficiency Score ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Resource Saving ◽  
Technical Efficiency Score

The present study intended to determine the technical and scale efficiency of sample dairy farms for evaluating their performance. Data Envelopment Analysis (DEA) technique was used to estimate the technical and scale efficiency of 80 each of member and nonmember dairy farms in the Pune district of Maharashtra state during 2019. Technical efficiency score further partitioned into pure technical efficiency and overall technical efficiency. The technical efficiency score was more for member dairy farms as compared to the non-members under the assumption of constant return to scale (CRS) and variable return to scale (VRS). It highlighted that the non-members of dairy cooperatives had more potential to reduce the input use without affecting the output level compared to the member group. It was also observed that the technical efficiency under the CRS assumption was more than VRS for both member and non-member groups. It revealed that the farms were scaled inefficient (SE<1) and not operating at optimal scale. The study further revealed a positive relationship between technical efficiency and herd size. It also revealed that the resource-saving potential due to the scale effect. So, it supported the policy of providing technical advice on the use of feed and fodder resources, better management practices, and increasing the herd size to increase the technical and scale efficiency.

scholarly journals Evaluating R&D and Transformation Functional Platforms’ Operational Performance Using a Data Envelopment Analysis Model: A Comparative Study

2019 ◽  
Vol 11 (18) ◽  
pp. 5023 ◽  
Author(s):  
Cao ◽  
You ◽  
Shi ◽  
Hu
Keyword(s):  
Data Envelopment Analysis ◽  
Technical Efficiency ◽  
Performance Status ◽  
Value Added ◽  
Scale Efficiency ◽  
High Tech ◽  
Data Envelopment Analysis Model ◽  
Data Envelopment ◽  
Analysis Model ◽  
Operation Performance

The purpose of this paper is to provide a contribution to the development of R&D and transformation functional platforms by identifying key performance influencing factors in the use of data envelopment analysis (DEA) to analyze platform operation performance status and reasons. The DEA method is undertaken to calculate the comprehensive efficiency, pure technical efficiency and scale efficiency of R&D and transformation functional platforms in China’s 30 provinces within the period 2016–2018. Based on the 2018 pure technical efficiency and scale efficiency calculations, the K-means clustering method was used to classify the R&D and transformation functional platforms of 30 provinces. Finally, according to the clustering results, the corresponding clustering improvement scheme is given. The operational level of R&D and transformation functional platforms in many provinces of China still needs to be improved: the R&D and transformation capabilities are weak, the market share of leading products is low, the ability of new technology value-added is insufficient, and the development of R&D and transformation functional platforms has regional imbalance. This study is based solely on statistical data, these data alone obviously cannot fully describe and evaluate the real state of R&D and transformation functional platform due to the complexity and diversity of platforms. Further research is needed to generalize beyond the performance indicators constructed in this paper. For the problems of low overall operation efficiency, unbalanced regional development, redundancy of input resources and lack of professional management personnel in the operation of R&D and transformation functional platforms, policy suggestions can be put forward according to clustering results and input and output adjustment values calculated based on relaxation variables. The study presenting a methodology for analyzing R&D and transformation functional platforms’ operation performance, and the conclusions will provide reference for the development of platforms and high-tech industries.

scholarly journals Measuring the Efficiency of Public Hospitals in Kuwait: A Two-Stage Data Envelopment Analysis and a Qualitative Survey Study

2020 ◽  
Vol 12 (3) ◽  
pp. 121
Author(s):  
Abdullah M. Alsabah ◽  
Hassan Haghparast-Bidgoli ◽  
Jolene Skordis
Keyword(s):  
Technical Efficiency ◽  
Efficiency Score ◽  
Hospital Efficiency ◽  
Public Hospitals ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Factors Affecting ◽  
The Mean ◽  
Technical Efficiency Score

The recent drop in oil prices has challenged public sector financing in Kuwait. Technical and scale efficiency scores for fifteen public hospitals in Kuwait from 2010 to 2014 were estimated using a two-stage data envelopment analysis (DEA). Technical efficiency scores were regressed against institutional characteristics using Tobit regression to investigate the determinants of efficiency differences in hospitals. Semi-structured interviews were also carried out with fourteen public and private hospital managers to qualitatively explore their perceptions and experience about about factors affecting hospital efficiency. The mean technical efficiency score for all hospitals was 85.8%, an improvement of 2% since 2010. The mean pure technical efficiency score was 79.6%, improving from 75% in 2010 to 81.2% in 2014. The mean scale efficiency score was 91.8%, improving from 87.6% in 2010 to 94.2% in 2014. Only three hospitals were constantly technically and scale efficient. Tobit regression showed that hospital efficiency was significantly associated with the average length of patient stay. Hospitals with more than 400 beds were potentially more technically and scale efficient. The qualitative study revealed that external factors affecting efficiency commonly included implemention of legislative changes and decreasing bureaucracy, while internal factors included increasing bed capacity and improving qualifications and training of human resources. Most public hospitals in Kuwait were not technically and scale efficient, but improvements were observed. Potential factors that affected the efficiency of hospitals in Kuwait were identified. These findings are useful to decision-makers in Kuwait for developing strategies to improve public hospital efficiency.

scholarly journals Cost Efficiency Determinants: Evidence from the Canadian Banking Industry

2019 ◽  
Vol 15 (1) ◽  
pp. 86
Author(s):  
Abayomi Oredegbe
Keyword(s):  
Technical Efficiency ◽  
Cost Efficiency ◽  
Banking Industry ◽  
Dominant Role ◽  
Scale Efficiency ◽  
Efficiency Decomposition ◽  
Cost Inefficiency ◽  
Industry Policy ◽  
The Cost ◽  
The Impact

This study examines the cost efficiency of the banking industry in Canada. Utilizing 12 years of data (i.e., 2006 to 2017), and a two-stage data envelopment analysis (DEA), it provides insight on the determinants of the industry&rsquo;s cost efficiency. It finds that the industry is cost inefficient, and that it could reduce costs by 11.52 percent. The cost inefficiency is due to technical and allocative inefficiencies, with technical inefficiency playing a dominant role. The technical efficiency decomposition shows that pure technical efficiency improved, but the scale efficiency deteriorated. The analysis of the determinants of cost efficiency reveals that deposit conversion into loans, high capitalization, and managerial tolerance for increase in administrative expense drive cost efficiency. On the other hand, market power and diversification diminish cost efficiency. In addition, the impact of profitability and credit risk are inconsequential to cost efficiency. This study contributes to literature by providing insights unique to Canada. Managers in the industry, policy makers, and regulators can point to these findings as empirical evidence supporting measures aimed at increasing the industry&rsquo;s competitiveness and resilience.

scholarly journals Significant inefficiency in running community health systems: The case of health posts in Southwest Ethiopia

PLoS ONE ◽  
2021 ◽  
Vol 16 (2) ◽  
pp. e0246559
Author(s):  
Kiddus Yitbarek ◽  
Gelila Abraham ◽  
Melkamu Berhane ◽  
Sarah Hurlburt ◽  
Carlyn Mann ◽  
...  
Keyword(s):  
Data Envelopment Analysis ◽  
Health Services ◽  
Technical Efficiency ◽  
Efficiency Score ◽  
Fiscal Year ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Tobit Regression ◽  
Southwestern Ethiopia ◽  
Technical Efficiency Score

Background Although much has been documented about the performance of the health extension program, there is a lack of information on how efficiently the program is running. Furthermore, the rising cost of health services and the absence of competition among publicly owned health facilities demands strong follow up of efficiency. Therefore, this study aimed to assess the technical efficiency of the health posts and determinants in Southwestern Ethiopia. Methods and materials We used data for one Ethiopian fiscal year (from July 2016 to June 2017) to estimate the technical efficiency of health posts. A total of 66 health posts were included in the analysis. We employed a two-stage data envelopment analysis to estimate technical efficiency. At the first stage, technical efficiency scores were calculated using data envelopment analysis program version 2.1. Predictors of technical efficiency were then identified at the second stage using Tobit regression, with STATA version 14. Results The findings revealed that 21.2% were technically efficient with a mean technical efficiency score of 0.6 (± 0.3), indicating that health posts could increase their service volume by 36% with no change made to the inputs they received. On the other hand, health posts had an average scale efficiency score of 0.8 (± 0.2) implying that the facilities have the potential to increase service volume by 16% with the existing resources. The regression model has indicated average waiting time for service has negatively affected technical efficiency. Conclusion More than three-quarters of health posts were found inefficient. The technical efficiency score of more than one-third of the health posts is even less than 50%. Community mobilization to enhance the uptake of health services at the health posts coupled with a possible reallocation of resources in less efficient health posts is a possible approach to improve the efficiency of the program.

scholarly journals Decomposition of the technical efficiency of the banking system

2018 ◽  
Vol 11 (1) ◽  
Author(s):  
Sanderson Abel ◽  
Alex Bara ◽  
Pierre Le Roux
Keyword(s):  
Technical Efficiency ◽  
Commercial Banks ◽  
Returns To Scale ◽  
Banking System ◽  
Efficiency Score ◽  
Foreign Banks ◽  
Scale Efficiency ◽  
Data Envelopment ◽  
Analysis Method ◽  
Technical Inefficiency

The study investigated the technical efficiency of the commercial banks in Zimbabwe during the period 2009–2015. The study entailed the decomposition of the technical efficiency into pure technical and scale efficiency to understand the sources of the technical inefficiency in the commercial banks in Zimbabwe. To accomplish the task, the study sampled 11 commercial banks of which 6 are domestic and the other 5 are foreign banks. The study used the data envelopment analysis method. The results of the study revealed that commercial banks in Zimbabwe are technically inefficient with an efficiency score of 82.9%. The average pure technical and scale efficiency scores were 96.6% and 85.6%, respectively. The results imply that technical inefficiency of the Zimbabwean commercial banks is mainly a result of scale inefficiency emanating from decreasing returns to scale. The deduction is that commercial banks in Zimbabwe are operating at below their optimum capacity and hence have scope to increase their operations in order to improve on technical efficiency.

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