Technical Efficiency of Banks in Southeast Asia (original) (raw)
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The Essays on Competitiveness, Efficiency, and Productivity: Methodological Issues and Applications
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Industry level analysis of productivity growth under market imperfections
Indian Growth and Development Review, 2019
Purpose-This study aims to estimate total factor productivity (TFP) growth for the post-2008 period for selected industries in the manufacturing sector at NIC 3-digit. Total factor productivity growth (TFPG) estimates are based on the theoretical framework provided by studies such Hall (1988), Abraham et al. (2009) and Crepon et al. (2005) that incorporate market imperfection in labour and product market, thereby modifying the traditional TFP estimation as Solow Residual. Design/methodology/approach-Based on the theoretical model that incorporates market imperfections in labour as well as product market in modifying the TFP estimates using the Levinsohn-Petrin framework of empirical estimation, the authors have calculated industry wise TFPG for 62 industries at NIC 3-digit level. Findings-The study finds three distinct trends: first, there are considerable industrial disparities in productivity growth in terms of TFP. The estimates have been found to be higher than the conventional Solow Residual for most industries, indicating the role played by market imperfections in affecting the conventional measure of productivity growth. Second, estimates of bargaining power are found to be lower than those compared to the earlier estimates in Maiti (2013) for the Indian organised manufacturing case for 1998-2005. This observation is commensurate with the observation in recent years of a falling share in labour wage in total output in organised manufacturing sector. Finally, the study also found a statistically significant contribution of greater mechanisation on TFPG while an adverse effect of the rising dependence of organised manufacturing on contractual labour. Originality/value-The role of market imperfections in measuring TFPG has been undertaken, and it has been found to be an important factor, as the estimated measures vary from the conventional measures of TFPG. Moreover, the study has considered a very recent period from 2008-2015 in estimating TFPG, as well as analysing the factors behind the trends in TFPG at industrial level.
2009
Based on Cuesta (2000), this paper develops a stochastic frontier production model that allows for different groups of firms to have different patterns of technical efficiency over time. The authors apply the model to the Malaysian manufacturing sector to decompose total factor productivity growth into technical efficiency change and technical progress for different firm sizes— e.g., large and small—in seven industries during 2000–2004. The empirical results indicate that technical efficiency has worsened across all industries and firm sizes. In contrast, evidence of substantial technical progress was found in all industries. In fact, technical progress has been larger than technical efficiency deterioration in most industries and firm sizes, leading to total factor productivity growth. The analysis identifies the industries and firm sizes that lag the most in productivity, and thus have the greatest scope for policies that facilitate productivity growth.
Economic performance and “frontier” efficiency: A product life-cycle approach
Journal of Productivity Analysis, 1989
We propose to introduce some economic performance variables of the firms and relate these with the corresponding "frontier" efficiency measures of 13 industries of the Belgian manufacturing sector in 1978. In order to find groups of similar firms by applying a cluster technique, we assume that this relationship is of a product life cycle nature. In the light of the product life cycle scheme itself and variations of it we can consider the possible explanatory variables of technical inefficiency in each group of firms as sources which intensify or slowdown the economic performance of the firm under consideration. Some cautious characterization of the top and bottom level clusters is formulated and linked to the efftciency issue.
2019
Agricultural area Bojonegoro's food crop is the area where most of the people in farming even contribute to more than 35% of East Java's agriculture. This study employed a stage of analysis, namely the calculation stage of agricultural productivity of food crops by using Data Envelopment Analysis (DEA) techniques. The results of the Bojonegoro Regency Regency can be seen from the average efficiency of the Bojonegoro Regency 0.88725; Tuban Regency area is 0.897875 and Lamongan Regency area is 0.855. From the above data it can be seen that on average, the Tuban Regency has a good efficiency value compared to Bojonegoro and Lamongan Regencies
Efficiency and productivity analyses of Indonesian manufacturing industries
Journal of Asian Economics, 2006
This study estimates the technical efficiencies and total factor productivity (TFP) growths in food, textile, chemical and metal products industries from 1993 to 2000 in Indonesia by using the stochastic frontier model. Furthermore, the determinants of inefficiency are also analyzed and TFP growth is decomposed into technological progress, a scale component, and efficiency growth. The results reveal that the food, textile, chemical and metal products sectors are on average 50.79%, 47.89%, 68.65% and 68.91% technically efficient, respectively. It is noted that ownership contributed to technical inefficiencies in the food sector; location and size contributed to technical inefficiencies in the textile sector, whereas size, ownership and age contributed to inefficiencies in the chemical and metal products sectors. We note that productivity in food, textile, and metal products sectors decreased at the rate of 2.73%, 0.26%, and 1.65%, respectively, but increased at a rate of 0.5% in the chemical sector. The decomposition of TFP growth indicates that the growths are driven positively by technical efficiency changes and negatively by technological progress in all four sectors.
On productivity performance gains of Indonesian firms
Managerial Finance, 2008
Purpose -The purpose of this paper is to develop a methodology to study profit vs non-profit seeking firms usefully to compare corporate performance. It aims to apply the methodology to measure if state vs non-state firms with different objectives are comparable in performance. If relevant, the paper also aims to comment on the applicability of this method to analysis of other firms, e.g. Islamic banks in Indonesia. Design/methodology/approach -The paper applies Malmquist data envelopment analysis method to different classes of firms: state vs non-state firms; aggregated at the industry and at national levels; and develop appropriate time trend analysis as well. Findings -The common belief that all state firms are inefficient is not upheld by test results: in some sectors (agriculture and chemicals) state firms are more efficient than private firms. Efficiency is very low, but did improve over time across all sectors and types of firms particularly before the 1997-1998 and in recent years. Efficiency is mostly achieved through technology adoption (technological change) accounts for most efficiency gains. Research limitations/implications -This study overturns findings of many accounting performance based studies and revisits policy implications. Practical implications -No one policy fits all in Indonesia for privatization programme. Originality/value -The paper provides more valid methodology to compare state firms with nonstate firms for the first time.