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Productivity growth in the Greek banking industry: A non-parametric approach

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Author Info
Anthony N. Rezitis (University of Ioannina)

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Abstract

This paper investigates productivity growth and technical efficiency in the Greek banking industry for the period 1982-1997. It also compares the 1982-92 and 1993-97 sub-periods, since after 1992 the Greek banking sector experienced substantial changes. The Malmquist productivity index and the DEA method are used to measure and decompose productivity growth and technical efficiency, respectively. Productivity growth is higher after 1992. Recent growth is mainly attributed to technical progress, while until 1992 growth is mainly attributed to improvements in efficiency. Furthermore, after 1992, pure efficiency is higher, and scale efficiency is lower, indicating that although banks achieved higher pure technical efficiency, they moved away from optimal scale. Finally, Tobit results show that size and specialization have positive effects on both pure and scale efficiency.

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File URL: http://www4.cema.edu.ar/pjae/m/124Rezitis200605
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Publisher Info
Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

Volume (Year): IX (2006)
Issue (Month): (May)
Pages: 119-138
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Handle: RePEc:cem:jaecon:v:9:y:2006:n:1:p:119-138

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Related research
Keywords: Greek banking; efficiency; productivity growth; Malmquist index; DEA;

Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Karafolas, S. & Mantakas, G., 1996. "A note on cost structure and economies of scale in Greek banking," Journal of Banking & Finance, Elsevier, vol. 20(2), pages 377-387, March. [Downloadable!] (restricted)
  2. Elyasiani, Elyas & Mehdian, Seyed, 1995. "The Comparative Efficiency Performance of Small and Large US Commercial Banks in the Pre- and Post-deregulation Eras," Applied Economics, Taylor and Francis Journals, vol. 27(11), pages 1069-79, November.
  3. Mukherjee, Kankana & Ray, Subhash C. & Miller, Stephen M., 2001. "Productivity growth in large US commercial banks: The initial post-deregulation experience," Journal of Banking & Finance, Elsevier, vol. 25(5), pages 913-939, May. [Downloadable!] (restricted)
  4. Favero, Carlo A & Papi, Luca, 1995. "Technical Efficiency and Scale Efficiency in the Italian Banking Sector: A Non-parametric Approach," Applied Economics, Taylor and Francis Journals, vol. 27(4), pages 385-95, April.
  5. Hao, Jonathan & Hunter, William Curt & Yang, Won Keun, 2001. "Deregulation and efficiency: the case of private Korean banks," Journal of Economics and Business, Elsevier, vol. 53(2-3), pages 237-254. [Downloadable!] (restricted)
  6. Canhoto, Ana & Dermine, Jean, 2003. "A note on banking efficiency in Portugal, New vs. Old banks," Journal of Banking & Finance, Elsevier, vol. 27(11), pages 2087-2098, November. [Downloadable!] (restricted)
  7. Humphrey, David B & Pulley, Lawrence B, 1997. "Banks' Responses to Deregulation: Profits, Technology, and Efficiency," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(1), pages 73-93, February.
  8. Kumbhakar, Subal C, et al, 2001. "The Effects of Deregulation on the Performance of Financial Institutions: The Case of Spanish Savings Banks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(1), pages 101-20, February.
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  9. Leightner, Jonathan E. & Lovell, C. A. Knox, 1998. "The Impact of Financial Liberalization on the Performance of Thai Banks," Journal of Economics and Business, Elsevier, vol. 50(2), pages 115-131, March. [Downloadable!] (restricted)
  10. Gilbert, R. Alton & Wilson, Paul W., 1998. "Effects of Deregulation on the Productivity of Korean Banks," Journal of Economics and Business, Elsevier, vol. 50(2), pages 133-155, March. [Downloadable!] (restricted)
  11. Casu, Barbara & Girardone, Claudia & Molyneux, Philip, 2004. "Productivity change in European banking: A comparison of parametric and non-parametric approaches," Journal of Banking & Finance, Elsevier, vol. 28(10), pages 2521-2540, October. [Downloadable!] (restricted)
  12. Christopoulos, Dimitris K & Tsionas, Efthymios G, 2001. "Banking Economic Efficiency in the Deregulation Period: Results from Heteroscedastic Stochastic Frontier Models," Manchester School, University of Manchester, vol. 69(6), pages 656-76, December. [Downloadable!] (restricted)
  13. Noulas, Athanasios G, 1997. "Productivity Growth in the Hellenic Banking Industry: State versus Private Banks," Applied Financial Economics, Taylor and Francis Journals, vol. 7(3), pages 223-28, June. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sufian, Fadzlan & Abdul Majid, Muhamed Zulkhibri, 2007. "Bank Ownership, Characteristics and Performance: A Comparative Analysis of Domestic and Foreign Islamic Banks in Malaysia," MPRA Paper 12131, University Library of Munich, Germany, revised 01 Jun 2007. [Downloadable!]
  2. Frank Leung & Gaofeng Han & Kevin Chow, 2009. "Financial Services Sector as a Driver of Productivity Growth in Hong Kong," Working Papers 0914, Hong Kong Monetary Authority. [Downloadable!]
  3. Boon L. Lee & Andrew C. Worthington & Wai Ho Leong, 2009. "Malmquist Indices of Pre and Post-Deregulation Productivity, Efficiency and Technological Change in the Singaporean Banking Sector," School of Economics and Finance Discussion Papers and Working Papers Series 228, School of Economics and Finance, Queensland University of Technology. [Downloadable!]
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