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Estimating Productivity Change in South African Banks: Decomposing Productity Index Numbers

Author

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  • Gerhardus Van Der Westhuizen

    (North-West University)

Abstract

Change in efficiency in South African banks covering the period 2001 to 2011 is estimated and decomposed into various components of efficiency change using the Decomposition of Productivity Index Numbers (DPIN). All four banks experienced, on average, positive TFP growth during the sample period with a decline starting in 2009. All four banks experienced technical progress and positive efficiency change for a major part of the sample period. On average the banks were not output technical efficient, but were output scale efficient. All the banks handled the financial crisis since 2007/2008 in its own peculiar way.

Suggested Citation

  • Gerhardus Van Der Westhuizen, 2012. "Estimating Productivity Change in South African Banks: Decomposing Productity Index Numbers," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 13(2-1), pages 65-86, Winter-Su.
  • Handle: RePEc:ekn:ekonom:v:15-16:y:2012-2013:i:2-1:p:65-86
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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