scholarly journals EVALUATION OF REGIONAL DEVELOPMENT WITH BANKING AND FINANCE DATA

2021 ◽  
Vol 13 (1) ◽  
Author(s):  
Bilge MEYDAN ◽  
Aydin ULUCAN ◽  
Kazim Baris ATICI
Keyword(s):  
Regional Development ◽  
Total Factor Productivity ◽  
Banking Sector ◽  
Productivity Index ◽  
Factor Productivity ◽  
Output Factor ◽  
Development Index ◽  
Banking And Finance ◽  
Development Levels ◽  
Sector Data

This research aims to measure the change of provincial development levels of Turkey’s 81 provinces through banking sector data. The applied methodology is the Malmquist Total Factor Productivity Index (MTFPI). We perform the analysis based on two models. The main difference between models relies on handling the factor associated with ‘loans’. The first approach sees the loans as an output factor, which is based on the idea that loans indicate investment and therefore development. In the second model, we take the loans as an input factor, which represents the idea that loans indicate debt and therefore they should be minimized. We evaluate the findings with respect to geographical classification and the province development index.

Measurement and determinants of total factor productivity: evidence from Indian banking industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Biswabhusan Bhuyan ◽  
Subhamitra Patra ◽  
Ranjan Kumar Bhuian
Keyword(s):  
Total Factor Productivity ◽  
Economies Of Scale ◽  
Banking Sector ◽  
Value Added ◽  
Productivity Index ◽  
Annual Data ◽  
Fiscal Deficit ◽  
Factor Productivity ◽  
Content Type ◽  
Frontier Analysis

PurposeThe purpose of this study is to measure the level of total factor productivity of the Indian banking sector and to identify both the bank-specific and macroeconomic determinants of the total factor productivity after the global subprime mortgage crisis.Design/methodology/approachThe research sample consists of 61 commercial banks including 21 public sector banks, 18 private sector banks and 22 foreign banks. The annual data is collected from the website of Reserve Bank of India from 2008 to 2019. The authors employed the non-parametric DEA approach to estimate Malmquist total factor productivity index for each bank as well as across different ownership groups. The panel data estimation technique was used to identify the determinants of total factor productivity.FindingsThe results suggested that an increase in the technological shift raised the bank's productivity above the optimal frontier. Among the bank-specific determinants, the bank size and bank diversifications are significantly declining productivity, whereas credit-deposit ratio and return on asset significantly increasing productivity. Among the macro-specific determinants, inflation, growth rate and fiscal deficit ratio negatively affect productivity, whereas capital formation to the GVA ratio boosts the level of productivity.Research limitations/implicationsThe authors have used intermediate method to select the inputs and outputs as per the suitability to the context. However, the disaggregate level such as state and district level analysis can be done using production and value-added approaches to explore the regional variations of the banking performance. Furthermore, the parametric methods such as stochastic frontier analysis can be used to examine banking performance, which the authors left for the future research.Practical implicationsThis study suggested that banks should increase the economies of scale of their total assets and focus on the interest-earning activity. The banks need to proactively operate the business policy by following the changing path of inflation. The banks need to reduce their rate of fiscal-deficit to the GVA with the purpose to boost their level of productivity.Originality/valueThe study provides an important implication for bankers and policymakers in terms of heightening the banking performance during the period of dynamic economic events.

scholarly journals The application of data envelopment analysis based Malmquist total factor productivity index: Empirical evidence in Turkish banking sector

2013 ◽  
Vol 60 (2) ◽  
pp. 139-159 ◽  
Author(s):  
Benli Keskin ◽  
Suleyman Degirmen
Keyword(s):  
Technical Efficiency ◽  
Total Factor Productivity ◽  
Banking Sector ◽  
Group Analysis ◽  
Sustainable Growth ◽  
Policy Implications ◽  
Productivity Index ◽  
Scale Efficiency ◽  
Factor Productivity ◽  
Performance Comparisons

The objective of this study is to measure the total factor productivity and the changes in components of the total factor productivity generated by the banks in Turkish Banking Sector (TBS) during the period of 2004-2009. Based on these measurements, we quantify the production efficiency of the banks. To that end, the total factor productivity is taken as an initial point, and various performance comparisons are made both within the specified three sub-groups and among all deposit banks in TBS. Within the context of performance measurement, we use input and output variables to test technical efficiency index, which represents a combination of change in technical efficiency and in technology, and to test a change in total factor productivity index which comprises a change in pure technical efficiency and scale efficiency. In the calculation of these indexes, Malmquist total factor productivity index method is employed. Computed indexes provide us with the opportunity to make performance comparisons in order to assess which group and bank have comparatively highest performance among the groups and banks included in this study. When we consider the effects of 2007-2008 global crises on Turkish economy, notably on TBS, calculating the performance change ratio for previous periods or estimating the same for the following periods becomes vital in terms of enduringly changing and developing banks. The growing competition in TBS forces banks to attach more importance to productivity factor for sustainable growth purposes. In this regard, Malmquist total factor productivity index gives us the opportunity to quantify the changes in total factor productivity over the years. Accordingly, this study applies group analysis to determine which group is working efficiently. To do this, Malmquist total factor productivity index requires the use of panel data and depicts efficiency changes by years, representing crucial information for us to produce policy implications. In brief, the test results obtained by this study indicate that the foreign banks, thanks to positive changes in their technology, technical efficiency and total factor productivity, are more effective than other private and state banking groups.

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.

scholarly journals Industry Efficiency and Total Factor Productivity Growth under Resources and Environmental Constraint in China

2012 ◽  
Vol 2012 ◽  
pp. 1-10 ◽  
Author(s):  
Feng Tao ◽  
Ling Li ◽  
X. H. Xia
Keyword(s):  
Energy Consumption ◽  
Total Factor Productivity ◽  
Environmental Efficiency ◽  
Pollutant Emissions ◽  
Productivity Index ◽  
Productivity Change ◽  
Factor Productivity ◽  
Energy And Environment ◽  
Capital Labor Ratio ◽  
Investment Capital

The growth of China's industry has been seriously depending on energy and environment. This paper attempts to apply the directional distance function and the Luenberger productivity index to measure the environmental efficiency, environmental total factor productivity, and its components at the level of subindustry in China over the period from 1999 to 2009 while considering energy consumption and emission of pollutants. This paper also empirically examines the determinants of efficiency and productivity change. The major findings are as follows. Firstly, the main sources of environmental inefficiency of China's industry are the inefficiency of gross industrial output value, the excessive energy consumption, and pollutant emissions. Secondly, the highest growth rate of environmental total factor productivity among the three industrial categories is manufacturing, followed by mining, and production and supply of electricity, gas, and water. Thirdly, foreign direct investment, capital-labor ratio, ownership structure, energy consumption structure, and environmental regulation have varying degrees of effects on the environmental efficiency and environmental total factor productivity.

scholarly journals Productivity Change of Microfinance Institutions in Bosnia and Herzegovina

2019 ◽  
Vol 14 (2) ◽  
pp. 23-33
Author(s):  
Velid Efendić ◽  
Nejra Hadžiahmetović
Keyword(s):  
Total Factor Productivity ◽  
Bosnia And Herzegovina ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Productivity Change ◽  
Microfinance Institutions ◽  
Factor Productivity ◽  
Strategic Objectives ◽  
Average Decrease ◽  
Recent Financial Crisis

Abstract The main aim of this paper is to investigate the productivity changes of microfinance institutions (MFIs) in Bosnia and Herzegovina (BiH) during and after the recent financial crisis. The study covers the period starting from 2008 until 2015. Using the Malmquist Productivity Index (MPI) over the sample of 10 MFIs and a balanced panel dataset of 80 observations, this study explores technical and technological change as well as total factor productivity (TFP) change. The empirical findings indicate a decline in TFP in most of the analyzed periods with an average decrease of 2.5%. The study reveals an average technological decline in the industry of 1.7%, while technical efficiency change is recorded at the level of -0.8%. Overall, crisis efficiency recovery occurred during the period between 2009 and 2013. However, due to technological inefficiencies, average total factor productivity change remains negative. Hence, policy makers need to enhance the technological progress in order to meet their strategic objectives in BiH MFIs.

scholarly journals Towards the measurement of total factor productivity index

2009 ◽  
Vol 57 (4) ◽  
pp. 544-554 ◽  
Author(s):  
Jakub Fischer ◽  
Jaroslav Sixta
Keyword(s):  
Total Factor Productivity ◽  
Productivity Index ◽  
Factor Productivity

scholarly journals Total Factor Productivity Growth of Indian General Insurance Companies in the Recent Period: A Bootstrapped Approach

2019 ◽  
Vol 11 (1-2) ◽  
pp. 59-80
Author(s):  
Ram Pratap Sinha
Keyword(s):  
Private Sector ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Malmquist Index ◽  
American Economic Review ◽  
Productivity Index ◽  
Insurance Companies ◽  
Productivity Change ◽  
Productivity Analysis ◽  
Factor Productivity

This study estimates Malmquist index of total factor productivity change of 14 major general insurers in India over the period 2009–10 to 2016–17 over 7 annual windows. The study decomposes total factor productivity index into its constituent components, using several approaches including Färe et al. (1989, Productivity Developments in Swedish Hospitals: A Malmquist Output Index Approach. Carbondale: Department of Economics, Southern Illinois University; 1992, Journal of Productivity Analysis 3(1): 85–101), Färe et al. (1994, American Economic Review 84(1): 66–83), Ray and Desli (1997, American Economic Review 87(5): 1033–39) and Wheelock and Wilson (1999, Journal of Money, Credit and Banking 31(2): 212–23). Furthermore, the study uses bootstrap data envelopment analysis (DEA) method to obtain bias-corrected point and interval estimates of Malmquist index and its components. Finally, the study makes a comparison of productivity performance between public and private sector insurers. The results indicate a modest growth in total factor productivity during the period contributed mainly by efficiency changes. The private sector insurers performed better than the public sector in terms of productivity growth. The variations in productivity performance indicate that insurer scale of activity can affect their performance. JEL Classification: G-23, C-61, D-21

scholarly journals Environmental Regulation, Trade Comparative Advantage, and the Manufacturing Industry’s Green Transformation and Upgrading

2020 ◽  
Vol 17 (8) ◽  
pp. 2823 ◽  
Author(s):  
Mengqi Gong ◽  
Zhe You ◽  
Linting Wang ◽  
Jinhua Cheng
Keyword(s):  
Environmental Regulation ◽  
Total Factor Productivity ◽  
Comparative Advantage ◽  
Manufacturing Industry ◽  
Environmental Regulations ◽  
Manufacturing Industries ◽  
Productivity Index ◽  
Chinese Government ◽  
Factor Productivity ◽  
Trade Patterns

This paper is the first to systematically review the theoretical mechanisms of environmental regulation and trade comparative advantage that affect the green transformation and upgrading of the manufacturing industry. On this basis, corresponding hypotheses are put forward. The non-radial and non-angle SBM (slacks-based measure) efficiency measurement model with undesirable outputs was used, combined with the use of the ML (green total factor productivity index) productivity index to measure green total factor productivity. Finally, the theoretical hypothesis was empirically tested using data from 27 manufacturing industries in China from 2005 to 2017. The results show the following: (1) There is a significant inverted U-shaped curve relationship between environmental regulation and the transformation of the manufacturing industry. In other words, as environmental regulation increases, its impact on the transformation and upgrading of the manufacturing industry is first promoted and then suppressed. (2) When there are no environmental regulations, the trade comparative advantage of the manufacturing industry is not conducive to industrial transformation. However, under the constraints of environmental regulations, the comparative advantage of trade will significantly promote the green transformation and upgrading of manufacturing. Therefore, in order to effectively promote transformation and upgrading of the manufacturing, this paper proposes the following policy recommendations: (1) The Chinese government should pay more attention to the impact of environmental regulation intensity on the transformation of manufacturing industries, further increase the intensity of environmental regulation within the reasonable range, and fully exert the positive effects of environmental regulation on the trade patterns and manufacturing industry transformation. (2) We should further optimize the structure of trade, realize the diversification of manufacturing import and export, and promote its transformation into high-end manufacturing. On this basis, green production technology in the manufacturing industry can be improved through the technology spillover effect. (3) Efforts should be made to improve the level of collaborative development between environmental regulation and trade patterns and to explore the transformation path of the manufacturing industry with the integration of environmental regulation and trade patterns.

Sign in / Sign up

Export Citation Format

Share Document