Banks total factor productivity change in a developing economy: does ownership and origins matter?

Sufian, Fadzlan (2011) Banks total factor productivity change in a developing economy: does ownership and origins matter? Journal of Asian Economics, 22 (1). pp. 84-98. ISSN 1049-0078

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Abstract

This paper employs the Malmquist Productivity Index (MPI) method to analyze the productivity of the Malaysian banking sector during the period 1995–2004. The empirical findings indicate that the Malaysian banking sector has exhibited productivity regress due to technological regress rather than efficiency decline. We find that the foreign banks have exhibited productivity regress, while their domestic peers have exhibited a marginal productivity increase. During the period under study, productivity levels seems to be positively associated with the stock exchange listed banks, but is negatively related to foreign ownership. In essence, the findings provide support to the home field advantage and the ‘‘limited form’’ of the global advantage hypotheses. On the other hand, the empirical findings seem to reject the ‘liability of unfamiliarness’ hypothesis.

Item Type:	Article (Journal)
Additional Information:	6678/5205
Uncontrolled Keywords:	bank ownership, Productivity change, malmquist productivity index, Panel regression analysis, Malaysia
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:	03 Nov 2011 16:52
Last Modified:	26 Jun 2013 15:05
URI:	http://irep.iium.edu.my/id/eprint/5205

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