Analysis Based Malmquist Productivity Index Research Articles

Analysing the Total Factor Productivity Change Among Urban Cooperative Banks in India: The Malmquist Productivity Approach

This study investigates the total factor productivity (TFP) growth among urban cooperative banks in India during 2014–2020. The measurement of productivity is done using the data envelopment analysis-based Malmquist productivity index. We use two different models, viz., the intermediation approach and the production approach, to see how productivity estimates vary with the change in inputs and outputs. Our results show a large asymmetry in productivity estimates both among banks and over time. TFP estimates were consistently higher under the production approach vis-à-vis the intermediation approach. Further, the empirical results show that productivity gains were mainly determined by technological progress rather than efficiency improvements. Thus, collaborations in technological know-how can be beneficial to productivity growth. JEL Classifications: G15, G21, G34

Spatio-temporal pattern evolution of China’s provincial tourism efficiency and development level based on DEA-MI model

The spatial differences of efficiency and development level of regional tourism are evident, and the dynamic grasp of their spatiotemporal evolution characteristics and coupling coordination relationship is important to promote high-quality sustainable tourism development. Herein, we measured the tourism development level of 31 provincial units in China during 2000–2020, introduced the data envelopment analysis-based Malmquist productivity index to determine tourism efficiency, used exploratory spatiotemporal data analysis methods to explore the spatiotemporal dynamic characteristics of regional tourism differences and spatial structure, constructed a coupled coordination model of tourism efficiency and development level and analyzed their coupling excellence and synergistic consistency. The results were as follows: (1) The spatial differences of comprehensive tourism efficiency from 31 provinces were evident, and the average situation showed high and low distribution characteristics in the east and west, respectively. The interannual changes showed a fluctuating downward trend, with the scale efficiency playing a supporting role for comprehensive efficiency and technical efficiency playing an influencing and restraining role. (2) Less fluctuation existed in the local spatial structure of tourism efficiency and development level; the direction of dependence was more stable, tourism development level was slightly more volatile, and the spatial dependency direction changes were similar. The tourism efficiency of local structure competition posture was stronger than that of collaboration, with the tourism development level collaboration integration being stronger. (3) The local spatial structure of tourism development level was more stable, the relative position of provincial units was more difficult to change, tourism efficiency of local spatial structure was unstable, and provincial units exhibited a greater possibility of change. (4) Tourism efficiency and the scale of the overall coupling degree and coupling coordination gradually improved, with similar spatiotemporal values. The overall coupling degree and coupling coordination degree of tourism efficiency and development level gradually improved, with similar spatiotemporal heterogeneity and volatility of local evolution. The area with a higher value coupling coordination degree spread slower and more widely.

Assessing the Impact of Digital Finance on the Total Factor Productivity of Commercial Banks: An Empirical Analysis of China

With the development of technologies such as big data and artificial intelligence, digital technology and finance are becoming increasingly intertwined. At present, digital finance has altered the competitive environment of commercial banks, and the traditional competitive edges in service scenarios and channels, customer information, and capital have been challenged. Based on perfect competition and technology spillover effects, this study attempted to measure the impact of digital finance on commercial banks’ total factor productivity (TFP) and its mediating and moderating mechanisms. We have used the data envelopment analysis-based Malmquist productivity index to measure the total factor productivity of 132 commercial banks in China between 2011 and 2019. The results show that (a) digital finance significantly enhances the TFP of commercial banks; (b) risk taking partially mediates the relationship between digital finance and TFP. The study further tests the effect of the nature of property rights and the moderating effect of diversification. The findings suggest that digital finance significantly improves the TFP of non-state-owned commercial banks but has no significant effect on the TFP of state-owned commercial banks. Additionally, the implementation of diversification can strengthen the effect of digital finance on TFP.

Performance of commercial banks in India: a non-parametric Malmquist index-based DEA approach

The present study evaluates productivity and efficiency of Indian commercial banks in terms of TFP growth, technological change and technical efficiency performances. Efficiency have been computed using data envelopment analysis-based Malmquist productivity index for the balanced panel data set of 70 commercial banks operating in India from 2005-2017. The analysis has been carried out in two stages, all banks as a single group and three bank categories individually. The results of all banks analysis revealed that, 44% banks have recorded positive change in TFPG and category wise analysis revealed that, technological change is found to be the primary reason for positive change in TFPG of 68% private banks. Also, 15% public sector banks and 32% foreign banks recorded positive TFPG. The study concludes that there is enough scope for improvement in the performance of Indian public sector banks in comparison of its counterparts in terms of productivity and efficiency.

Does country governance and bank productivity Nexus matters?

PurposeThis study aims to examine the impact of country governance and other potential bank-specific characteristics and macroeconomic condition determinants on bank productivity in the period of 2006–2016.Design/methodology/approachThe productivity level of total 167 banks selected from Malaysia, Indonesia, Brunei and Singapore are evaluated using the data envelopment analysis-based Malmquist productivity index method. A panel regression analysis framework based on ordinary least squares, a fixed effect and a random effect models then are used to identify its main determinants.FindingsThe empirical findings indicate that the total factor productivity changes of Islamic banks is higher than conventional banks. The liquidity and global financial crisis influence both banks’ productivity. Bank size, credit risk, market power, management efficiency and inflation merely influence Islamic banks’ productivity. On the country governance dimensions, voice and accountability are found to positively influence both banks’ productivity. Regulatory quality and rule of law (RL) significantly influences the conventional parts. Political stability and absence of violence, government effectiveness, RL and control of corruption negatively influence the banks’ productivity, but this influence is only significant for the Islamic banks.Originality/valueCountry governance has received surprisingly little attention in the banking industry over the past few decades. Majority of the studies that examine the effect of governance on bank performance have focused more on the micro governance dimension. Thus, to the best of the researcher’s knowledge, no study has been done to address the effect of country governance on the productivity of the Islamic and conventional banks.

Use of news and patent mining to identify companies with growth potential

Introduction. Enterprise decision-makers can use news media to help guide investment decisions, and patents are publicly available documents describing research and development outputs. This work sought to leverage the information extracted from news articles and patent documents to identify companies holding patents about emerging technologies. This helped to pinpoint the companies with growth potential. Method. We used text mining techniques to extract hot terms for novel technologies and products from news articles and patent documents to identify the supply chain companies holding patent portfolios in emerging technologies. Analysis. We identified eighteen public companies in the supply chain of the automotive industry in Taiwan. The data envelopment analysis-based Malmquist productivity index was adopted to evaluate their relative performance growth over time. Results. The experimental results show that most of the companies identified by the proposed method had promising growth potential. Conclusions. The results of this research indicate that the supply chain companies identified by the hot terms in news articles and patent documents possessed development potential. This could assist decision-makers in planning investment strategies.

Productivity Analysis of Grape by Cultivation Types using MPI

The purpose of this study is to analyse the productivity changes of grape by cultivation types. A Data Envelopment Analysis based Malmquist Productivity Index (MPI) was adopted using Income Survey data of Agricultural Products (2001 to 2015) from the Korean Rural Development Administration. MPI was decomposed into technical efficiency change and technical change. Technical efficiency change was further decomposed into pure technical efficiency change and scale efficiency change. The analysis results are summarized as follows. First, the MPI of open-field grape shows an annual increase of 0.5%. Technical efficiency was decreased at a CAGR of 0.1%, while technical change increased at a CAGR of 0.5%. Second, the MPI of greenhouse grape shows an annual increase of 4.7%. Also, technical efficiency and technology level were increased at a CAGR of 0.3% and 4.4%, respectively. The results of this paper may provide useful information for the background and cause of grape farmers’ closing orchard

Malmquist Data Envelopment Analysis as a tool to evaluate the Productivity levels of Container Ports in Developing Countries located in East and Southern Africa.

Aim: The purpose of this paper is to examine the productivity of 12 container ports located in East and Southern African developing nations for the period of 2014-2016. Furthermore, to investigate the sources of productivity change over the time period. Design / Research methods: This research collects data on the 12 container ports. The productivity of these ports is analyzed using the Data Envelopment Analysis based Malmquist productivity index. This is decomposed into technological changes and technical efficiency. The sources of productivity change are identified.Conclusions /findings: The major finding of this study is the trend in the port efficiency level over the three year period of analysis. Therefore assisting maritime policymakers and port authorities on what aspect of the port production need enhancement. Originality/value of the article: Evaluation of ports in developing nations in Africa is not common. Also, the year under examination is less than five years. Therefore the result is relevant to port authorities as well as to the African nations.Implications of the research: 90% of import and exports into developing African nations are done by sea. The implication of this is that an efficient or inefficient port will have a multiplier effect on the nation’s economy. Great improvement in port productivity will enhance economic growth and development.Limitations of the research: Port efficiency should be evaluated on a yearly basis to serve as a major determinant of port productivity. However, this evaluation is based on availability of data.

The Productivity of Turkey's Agricultural Production on Provincial Basis

Given the geographical location, seasonal features, and historical-cultural features, agriculture has always been important in Turkey. In this study, using the data from 81 provinces in Turkey between 2007 and 2015, we analyze whether agricultural production is efficient or not. In our analysis, we use the Data Envelopment Analysis based Malmquist Productivity Index. The input set is determined as the number of tractors used in plant production, the number of laborers in agricultural sector, the cultivated area used in agriculture and the amount of fertilizer used in agriculture, while the output is determined as the amount of inflation-adjusted income generated by the agricultural plant production activities of 81 provinces between 2007 and 2015. In the given period, the province with the greatest increase in agricultural productivity was Hakkari, while the province with the greatest decrease in agricultural productivity was Istanbul. In total, although a slight increase is observed, there is a stable path in agricultural productivity of Turkey.

The sources of productivity change and efficiency in Islamic banking: Application of Malmquist productivity index

Aim: This paper aims to explore performance of Islamic banks in 13 countries from the period 2005 to 2014 and investigates sources of productivity change over the time. Design / Research methods: The present study gather data on the 31 Islamic banks. The productivity is examined using the Data Envelopment Analysis-based Malmquist productivity index. That we decompose into scale efficiency, technological change and technical efficiency. Source of productivity change in Islamic banks is then identified. We use intermediation approach and production approach to select inputs and outputs of banks. Conclusions / findings: Although the two approaches are different, our empirical implementation shows that they yield very similar results regarding productivity, efficiency and source of productivity change. Islamic banks are productive and efficient over the study period, but they did not show to be scale efficient and they suffer from technological change evolutions. Moreover, we are able to show that Subprime crisis had a slightly negative effect on productivity in Islamic banking industry. Originality / value of the article: Empirical studies are still rare and findings are controversial on productivity and efficiency of Islamic banks. This study intends to fill the gaps with a specific focus on measuring productivity index using two different intermediation approach and production approach to select input and output variables.Implications of the research (if applicable) – Islamic banks are scale inefficient and must improve size of their activities, one possible suggestion is meagering small banks.Limitations of the research (if applicable) – Further research can use bootstrapping techniques to correct total factor productivity estimates for bias and to assess the uncertainty surrounding such estimates.

Does productivity of Islamic banks endure progress or regress?

PurposeThis paper aims to explore the level of productivity of Islamic banks specifically in selected Southeast Asian Countries from the period 2006 to 2014. Besides, this study also investigates the potential determinants of bank-specific characteristics and macroeconomic conditions that may influence the productivity of banking sector.Design/methodology/approachThe present study gathers data on the 29 Islamic banks from Southeast Asian countries, namely, Brunei, Indonesia and Malaysia. The productivity level of the Islamic banks is evaluated using the data envelopment analysis-based Malmquist productivity index method. The authors then used a panel regression analysis framework based on the ordinary least square to identify potential determinants.FindingsThe domestic and foreign Islamic banks have exhibited progress in total factor productivity change solely attributed to the increase in efficiency change (EFFCH) which were mainly managerial rather than scale related. Foreign-owned banks have been slightly more productive compared to their domestic-owned bank counterparts, attributed to a higher EFFCH but insignificantly different. Furthermore, capitalisation, liquidity and world financial crisis determinants have significantly influenced productivity level of Islamic banks.Originality/valueThe study on the productivity of Islamic banking is still in its formative stage. To date, very limited study has been conducted to examine the productivity level in Southeast Asian, which is a strong regional hub for Islamic banking. This study intends to fill the gaps with a specific focus on the productivity level, specifically narrowing down to Southeast Asian countries in the domestic and foreign Islamic banking sector.

Analysing Efficiency Change in Working Capital Management using Malmquist Productivity Index

The purpose of this paper is to study the change in working capital management (WCM) efficiency in Indian manufacturing sector and analyse the effect of various exogenous factors. Data envelopment analysis based Malmquist productivity index (MPI) and it components pure efficiency change and scale efficiency change are used to gauge changes in WCM efficiency for the first time. Data from 1074 Indian manufacturing sector firms covering a period of 10 years (2004-2013) are used for the analysis. Using both graphical and statistical analysis we find that on an average there has been a continuous growth in efficiency over the years and that pure efficiency has increased more than scale efficiency. We also find that a number of firm-specific factors like sales growth, profitability, debt ratio and return on assets do affect the growth of WCM efficiency.

Technical efficiency and productivity growth in public sector hospitals of Uttarakhand (India)

This paper measures technical efficiency (TE) and total factor productivity (TFP) of 27 government hospitals of Uttarakhand (India) through data envelopment analysis based Malmquist Productivity Index for the period from 2001 to 2011. Technical efficiency change (TECh) and technical change (TECHCh) for each hospital are also estimated to identify sources of TFP growth. The results show that on average, TFP in the hospitals increased by a rate of 4.9 % per annum, with slightly higher growth observed in TE (2.6 %) than in technology (2.2 %). The study also reveals that TFP growth varies across regions and areas. On average, it has grown slightly faster in Garhwal region than Kumaon region. Further, it is observed relatively higher in the hospitals of plain/semi-plain areas than that of hill areas. It is observed that in some hospitals, TECh and TECHCh indices did not move in the same direction and therefore positive impact of one component on the TFP growth was largely cancelled by the negative impact of the other. The paper suggests that TFP in the public hospitals could be improved by reallocating the staff from inefficient hospitals to efficient ones; improving human capital base of inefficient hospitals; and investing in new medical technology.

Measuring the Productivity of Energy Consumption of Major Industries in China: A DEA-Based Method

Data envelopment analysis can be applied to measure the productivity of multiple input and output decision-making units. In addition, the data envelopment analysis-based Malmquist productivity index can be used as a tool for measuring the productivity change during different time periods. In this paper, we use an input-oriented model to measure the energy consumption productivity change from 1999 to 2008 of fourteen industry sectors in China as decision-making units. The results show that there are only four sectors that experienced effective energy consumption throughout the whole reference period. It also shows that these sectors always lie on the efficiency frontier of energy consumption as benchmarks. The other ten sectors experienced inefficiency in some two-year time periods and the productivity changes were not steady. The data envelopment analysis-based Malmquist productivity index provides a good way to measure the energy consumption and can give China's policy makers the information to promote their strategy of sustainable development.