scholarly journals The Determinant of Banking Efficiency (Data Envelopment Analysis Based on Intermediation Approach)

Author(s):  
Nabila Zahra ◽  
Darwanto Darwanto

This research aims at analyzing the level of efficiency with intermediation approach and determinant of efficiency of Bank Pembangunan Daerah (BPD). Efficiency is measured using the Data Envelopment Analysis (DEA) method based on the intermediation approach. This research   contribute on modelling of determinant of efficiency of Bank Pembangunan Daerah (BPD) using intermediation approach.  The object of this research is 26 BPD(s). Furthermore, the determinant of efficiency of BPD is analyzed using the Tobit regression. The level of efficiency is the dependent variable. Meanwhile, the independent variables used are CAR, LDR, NPL, NIM, ROA, Inflation, Economic Growth, and Interest Rate. The research results show that BPD has a different efficiency level average (high, sufficient, moderate, and low efficiency level average). This is due to the use of inputs that have an impact on the optimal output maximization. CAR and LDR have the significant and positive effects on the efficiency of BPD. Interest rate and inflation have the significant and negative effects on the efficiency of BPD. Meanwhile, NPL, NIM, ROA and Economic Growth have no effects on the efficiency of BPD. This results is expected to contribute in identifying any factor affecting the efficiency of BPD, both the internal and macro economy, and also to be the stimulus for the development of health measuring instrument of BPD in which efficiency reflects the quality of risk management on the intermediary activity of BPD.

2021 ◽  
Vol 10 (04) ◽  
pp. 258-268
Author(s):  
Pantri Widyastuti ◽  
Atik Nurwahyuni

Dalam sistem kesehatan yang berkembang saat ini, efisiensi merupakan hal yang utama. Pengukuran efisiensi bermanfaat untuk pemerintah maupun swasta untuk dapat mengambil keputusan yang berhubungan dengan tinggi rendahnya biaya perawatan di rumah sakit. Penelitian ini bertujuan untuk mengkaji metode Data Envelopment Analysis (DEA) yang digunakan dalam berbagai penelitian dalam pengukuran efisiensi rumah sakit. Desain penelitian yang digunakan adalah dengan sistematic review dengan metode PRISMA tanpa meta analisis. Sumber data didapatkan dari Proquest, Sciencedirect dan Pubmed pada tahun 2019 hingga 2020. Pencarian data dilakukan pada bulan Oktober 2020 dengan kata kunci Hospital Efficiency dan Data Envelopment Analysis. Hasilnya adalah penilaian efisiensi rumah sakit menggunakan metode DEA lebih banyak dilakukan dengan analisa dua tahap menggunakan tobit regression atau truncated regression. Perhitungan index malmquist juga banyak digunakan setelah perhitungan DEA dilakukan untuk melihat efisiensi rumah sakit dalam periode waktu tertentu.


Author(s):  
Guangwen Gong ◽  
Yingchun Chen ◽  
Hongxia Gao ◽  
Dai Su ◽  
Jingjing Chang

Background: A healthcare system refers to a typical network production system. Network data envelopment analysis (DEA) show an advantage than traditional DEA in measure the efficiency of healthcare systems. This paper utilized network data envelopment analysis to evaluate the overall and two substage efficiencies of China’s healthcare system in each of its province after the implementation of the healthcare reform. Tobit regression was performed to analyze the factors that affect the overall efficiency of healthcare systems in the provinces of China. Methods: Network DEA were obtained on MaxDEA 7.0 software, and the results of Tobit regression analysis were obtained on StataSE 15 software. The data for this study were acquired from the China health statistics yearbook (2009–2018) and official websites of databases of Chinese national bureau. Results: Tobit regression reveals that regions and government health expenditure effect the efficiency of the healthcare system in a positive way: the number of high education enrollment per 100,000 inhabitants, the number of public hospital, and social health expenditure effect the efficiency of healthcare system were negative. Conclusion: Some provincial overall efficiency has fluctuating increased, while other provincial has fluctuating decreased, and the average overall efficiency scores were fluctuations increase.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulhadi Aliyara Haruna ◽  
Abu Sufian Abu Bakar

Purpose This paper aims to examine the impact of interest rate liberalization on economic growth and the relevance of corruption in the five selected sub-Saharan African countries. Design/methodology/approach The study used the modified version of Driscoll and Kraay’s model by Hoechle, which solved the effects of cross-sectional dependence and heteroscedasticity. Findings The findings reveal a positive impact of the index on economic growth, and it was found that foreign direct investment (FDI) and credit to private sector by banks (CPSB) all stimulate economic growth. The interaction terms of corruption with FDI and CPSB indicate negative effects that show how corruption erodes the benefits of liberalization. Finally, the paper recommends the pursuit of appropriate policies with the sole aim of eradicating corruption and providing a conducive environment for business. Originality/value The paper developed a composite domestic financial liberalization index to capture the timing and essential dimensions of the reform process. The study investigates the effect of interest rate liberalization on economic growth and the relevance of corruption. Most of the recent and past studies only examined the impact of interest rate reforms on growth without investigating the relevance of corruption.


2018 ◽  
Vol 10 (8) ◽  
pp. 2697 ◽  
Author(s):  
Yun-Gi Hwang ◽  
Soohyun Park ◽  
Daecheol Kim

Results of the CDI and QODA evaluation developed by OECD showed that Korea’s aid presented low efficiency compared to other aid countries. However, these methods represent a qualitative assessment of the effectiveness of each country’s aid and are not applicable to the evaluation of actual aid projects and the identification of causes of the inefficiency. Therefore, it is needed to grasp the reality of Korea’s aid and to identify the cause of aid inefficiency to set up a better ODA policy. The purpose of this study is to improve the effectiveness of Korea’s Official Development Assistance (ODA) provided to developing countries. To do this, we analyzed the efficiency of ODA provided to 33 recipient countries by Korea through data envelopment analysis method. The effects of three factors, illiteracy, integrity, and GDP, on efficiency were also investigated by utilizing a Tobit regression analysis. As a result of the DEA efficiency analysis, it was found that the average efficiency was about 65.74%. By region, the average efficiency scores of Asia, Africa, Central and South America, and Middle East and Eastern Europe were about 47.8%, 78.9%, 70.4%, and 62.7%, respectively. This indicates that Asian countries are inefficient compared to countries from other regions. It was also found that GDP, integrity, and illiteracy have positive effects on efficiency. The methodology proposed in this study can be used for other studies to create an aid policy that produces efficient results.


Mathematics ◽  
2020 ◽  
Vol 8 (8) ◽  
pp. 1347
Author(s):  
Ioannis E. Tsolas

This paper aims to provide a novel construct that is based on data envelopment analysis (DEA) range adjusted measure (RAM) of efficiency and demonstrate its practical implementation by evaluating the financial performance of a sample of three upper-class contracting license (Classes 5–7) Greek construction firms. In a two-step framework, firm efficiency (i.e., composite indicators (CIs)) is produced firstly by means of RAM using single financial ratios, which are selected by grey relational analysis (GRA), and then Tobit regression is employed to model the CIs. In light of the results, only 4% of the sampled firms are efficient, and the firm ranking is consistent with the ranking of Grey Relational Grande (GRG) values produced by GRA. Moreover, the firms with a contracting license of the highest level (Class 7) appear not to be superior in efficiency to their counterparts that belong to Classes 5–6.


2018 ◽  
Vol 65 (01) ◽  
pp. 239-256
Author(s):  
SUNG-KO LI ◽  
CHUN-KEI TSANG

Many developing countries are receiving official development assistance (ODA). Whether ODA is beneficial or harmful to the receiving country is controversial in the literature. This paper analyzes this issue from a new angle by adopting the framework of competitiveness which allows us to link resource allocation with economic growth. Under this framework, we point out that the mechanism of resource allocation influences the effectiveness of ODA on economic growth. By applying data envelopment analysis (DEA) to competitiveness, we capture the effects of inefficient and biased allocation of resources on ODA. The data confirm the co-existence of positive and negative impacts of ODA. Finally, we conclude that current ODA is not efficient in helping most of the receiving countries.


2005 ◽  
Vol 8 (2) ◽  
pp. 167-189 ◽  
Author(s):  
Tae Hwan Yoo

Development in the financial sector, in particular, the banking sector, plays a key role in stimulating and stabilizing economic growth. Since the foreign exchange crisis in 1991, India has undertaken banking sector reforms. This paper focuses on the following two issues. First, I provide an overview of development in the banking sector over the years, especially after the implementation of the reform policy programs. In order to show the evolution of the Indian banking sector, I examine the reserve ratios reduction, interest rate deregulation, and ratios of non-performing assets. Second, this paper investigates the performance of banking groups by comparing the degree of profitability, and the soundness and efficiency of banks in India. In conclusion, while reform policies have had positive effects on the performance of banks, especially Public Sector Banks in India, the Indian government has to take further steps to deregulate and liberalize the banking industry.


Author(s):  
Ahmet Fatih Aydemir ◽  
Dilek Özdemir ◽  
Ömer Selçuk Emsen

The effects of the military expenditure on the economic growth and consequently on the employment has been the primary topic of the discussing in the literature of economics. Considering that the military expenditures generally emerge as a sub-item of the public spending, it has been asserted by the liberal approach that the principle of the non-productiveness of the public sector would be even more applicable in the military expenditures. None the less, using the military spending as a tool to lead an economy that feature underemployment constitutes the positive aspect of the views to the military expenditure and this is also the case of the prediction of the Keynesian economy. In this study, the effects of the military expenditure on the unemployment, which is a reflection of the effects of the economic growth, are analyzed as the subject matter. The findings revealed that the military spending has positive effects on the unemployment in some G20 states while it also has negative effects in some and has neutral effects in others. In addition, it is further indicated that the positive effects are experienced in relatively advanced economies, the negative effects emerge in relatively less developed economies, and the countries with abundant natural resources experience neutral effects.


Author(s):  
Özgür Ömer Ersin ◽  
Melike Bildirici

The study aims to evaluate the economic growth process and the macroeconomic factors, namely, the inflation rates, the value added in the production taken as a proxy of productivity and openness to trade for the selected Eurasian transition economies. The paper focuses on the transition period and the economic performance achieved following the independence of the analyzed countries. By using a sample that consists of Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, the relationship between economic growth with inflation, trade openness and value added obtained by the national industries are evaluated within a panel setting. The dataset is investigated with traditional and structural break unit root tests followed by panel regression analyses. Considering the findings in the literature which suggest either statistically insignificant or having positive or negative effects of inflation on growth depending on the countries analyzed, the empirical findings of the paper are in favor of negative effects of inflation on growth: though the size of the effect of inflation rates on growth in rather small, negative effect of inflation cannot be rejected. Further, the positive effects of value added in the production which is taken as a proxy to productivity shows significant positive impacts on growth. Similarly, openness to international trade is shown to have positive impacts for the transition countries analyzed. The results are in favor of the findings in literature suggesting that “it is not the inflation rates, rather than the variation in inflation” which could limit economic growth. The findings for openness and value added suggest policies to enhance productivity and international trade to accelerate the economic growth in the transition economies.


2016 ◽  
Vol 5 (1) ◽  
pp. 31-50
Author(s):  
Ika Yulita ◽  
Sofyan Rizal

The purpose of this research is to measure efficiency level of sharia banking in Malysia and Indonesia countries and to analyze the factors affecting the level of efficiency of sharia banking for both countries. This reseach uses DEA (Data Envelopment Analysis) method in order to test the assumptions of Variabel Return to Scale (VRS), and uses Kolmogorov-Smirnov and Mann Whitney U-Test in order to test normality, and uses regression dummy variable of the data from the first quarter of 2011 until the fourth quarter of 2014. The research shows overall level of efficiency of sharia banking in Malaysia and Indonesia countries are fluctuating. Based on result, sharia banking in Indonesia more efficient than sharia banking in Malaysia; However, there is no significant differences among them. The reasons of this inefficiency are deposits, total  financing, fixed asset, and personnel cost. However, operational income is the most efficient variabel for both countriesDOI:  10.15408/sjie.v5i1.3129 


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