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Productivity growth and biased technological change: Credit banks in Japan

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  • Barros, Carlos Pestana
  • Managi, Shunsuke
  • Matousek, Roman

Abstract

This paper investigates the productivity change of Japanese credit banks with a Malmquist index and the input technological bias during 2000-2006. Our results indicate that the traditional growth accounting method, which assumes Hicks neutral technological change, is not appropriate for analyzing changes in productivity. Our analysis unambiguously shows that management of Shinkin banks has to be improved. These must be based on the improvement of technical efficiency and/or technological change, emulating the procedures of the best-practice banks, i.e., those banks with Malmquist productivity scores higher than one and simultaneously with technical efficiency and technological change higher than one.

Suggested Citation

  • Barros, Carlos Pestana & Managi, Shunsuke & Matousek, Roman, 2009. "Productivity growth and biased technological change: Credit banks in Japan," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(5), pages 924-936, December.
    • Handle: RePEc:eee:intfin:v:19:y:2009:i:5:p:924-936
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    2. Tsionas, Efthymios G. & Assaf, A. George & Matousek, Roman, 2015. "Dynamic technical and allocative efficiencies in European banking," Journal of Banking & Finance, Elsevier, vol. 52(C), pages 130-139.
    3. Vithessonthi, Chaiporn, 2016. "Deflation, bank credit growth, and non-performing loans: Evidence from Japan," International Review of Financial Analysis, Elsevier, vol. 45(C), pages 295-305.
    4. Fragoudaki, Alexandra & Giokas, Dimitriοs & Glyptou, Kyriaki, 2016. "Efficiency and productivity changes in Greek airports during the crisis years 2010–2014," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 306-315.
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    6. Alinezhad , Alireza & Nasiri Sadeghloo , Mohammad Javad, 2016. "Application of Malmquist Index in Two-Stage DEA for Measurement of Productivity Growth," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 11(1), pages 31-51, January.
    7. Ming-Miin Yu & Li-Hsueh Chen, 2020. "A meta-frontier network data envelopment analysis approach for the measurement of technological bias with network production structure," Annals of Operations Research, Springer, vol. 287(1), pages 495-514, April.
    8. Karligash Kenjegalieva & Richard Simper, 2010. "A Productivity analysis of Eastern European banking taking into account risk decomposition and environmental variables," Discussion Paper Series 2010_02, Department of Economics, Loughborough University, revised Jan 2010.
    9. Merkert, Rico & Assaf, A. George, 2015. "Using DEA models to jointly estimate service quality perception and profitability – Evidence from international airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 42-50.
    10. Tomas Baležentis, 2014. "Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 731-746, November.
    11. Mamatzakis, Emmanuel & Matousek, Roman & Vu, Anh Nguyet, 2016. "What is the impact of bankrupt and restructured loans on Japanese bank efficiency?," Journal of Banking & Finance, Elsevier, vol. 72(S), pages 187-202.
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    13. Duygun, Meryem & Sena, Vania & Shaban, Mohamed, 2016. "Trademarking activities and total factor productivity: Some evidence for British commercial banks using a metafrontier approach," Journal of Banking & Finance, Elsevier, vol. 72(S), pages 70-80.
    14. Besstremyannaya, Galina, 2017. "Heterogeneous effect of the global financial crisis and the Great East Japan Earthquake on costs of Japanese banks," Journal of Empirical Finance, Elsevier, vol. 42(C), pages 66-89.
    15. Ionut Cristian Ivan, 2015. "Efficiency frontier on Japanese banking system," International Economics, University of Lodz, Faculty of Economics and Sociology, issue 12, pages 235-249, December.
    16. Fernandes, Elton & Pacheco, Ricardo Rodrigues, 2018. "Managerial performance of airports in Brazil before and after concessions," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 245-257.
    17. Bezerra, George C.L. & Gomes, Carlos F., 2018. "Performance measurement practices in airports: Multidimensionality and utilization patterns," Journal of Air Transport Management, Elsevier, vol. 70(C), pages 113-125.
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    19. Degl'Innocenti, Marta & Kourtzidis, Stavros A. & Sevic, Zeljko & Tzeremes, Nickolaos G., 2017. "Bank productivity growth and convergence in the European Union during the financial crisis," Journal of Banking & Finance, Elsevier, vol. 75(C), pages 184-199.
    20. See, Kok Fong & Li, Fei, 2015. "Total factor productivity analysis of the UK airport industry: A Hicks-Moorsteen index method," Journal of Air Transport Management, Elsevier, vol. 43(C), pages 1-10.
    21. Mamatzakis, Emmanuel & matousek, roman & vu, anh, 2019. "The interplay between problem loans and Japanese bank productivity," MPRA Paper 92960, University Library of Munich, Germany.
    22. Abbott, Malcolm, 2015. "Reform and efficiency of New Zealand's airports," Utilities Policy, Elsevier, vol. 36(C), pages 1-9.

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