Sources of banks’ productivity growth in a developing economy: efficiency change or technological progress?

Sufian, Fadzlan (2010) Sources of banks’ productivity growth in a developing economy: efficiency change or technological progress? International Journal of Management and Enterprise Development, 9 (2). pp. 179-200.

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Abstract

This paper examines the sources of total factor productivity in the Thailand banking sector during 1999–2008. We employ the output-oriented Malmquist productivity index first, proposed by Shephard (1970) to isolate efforts to catch up to the frontier (efficiency change (EFFCH)) from shifts in the frontier (technological change (TECHCH)). We also explore main sources of EFFCH: either improvements in management practices (pure technical efficiency change) or optimal size (scale efficiency change). The findings indicate that the majority of the medium banks (MED_BNKS) and large banks have exhibited productivity growth, while the majority of the small and MED_BNKS have experienced productivity regress.

Item Type:	Article (Journal)
Additional Information:	/5166
Uncontrolled Keywords:	Banks, Efficiency and productivity, Enterprise development, MPI, Malmquist productivity index, Thailand
Subjects:	H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Fadzlan Sufian
Date Deposited:	01 Nov 2011 17:17
Last Modified:	01 Nov 2011 17:17
URI:	http://irep.iium.edu.my/id/eprint/5166

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