IDEAS home Printed from https://ideas.repec.org/a/ids/ijbpma/v24y2023i3-4p556-598.html
   My bibliography  Save this article

Modelling technical efficiency and productivity growth of UAE banks: a three-stage analytical framework

Author

Listed:
  • Welcome Sibanda
  • Mercy Chaita

Abstract

This study tests for technical-efficiency and total-factor-productivity-growth for a sample of 60 UAE banks during the sample period 2000-2018, a period of extensive macro-prudential deregulation, sectoral consolidation and macro-economic shocks, using unique sub-sample periods mirroring expansion, recession and slowbalisation economic-cycles. We employ the DEA and the Malmquist Total Factor Productivity Index to capture technical-efficiency frontier-shifts for a multi-input-output bank. We detect technological-change-driven total-factor-productivity-growth and pure-technical-efficiency driven technical-efficiency. Efficiency-change lags economic cycles and sub-sample splits indicate significant scale inefficiency. Further, while foreign banks are more efficient than UAE domiciled banks, irrespective of size and index used, their performance deteriorates significantly more than UAE-domiciled banks during the 2008 Global Financial Crisis. Our results cast doubt on prior evidence that output proxy-choice is critical to result-robustness, specifically for long-term productivity trends. Further, the de-biased tobit regression analysis indicates a significant correlation between technical efficiency and size, diversification, financial structure, and profitability parameters.

Suggested Citation

  • Welcome Sibanda & Mercy Chaita, 2023. "Modelling technical efficiency and productivity growth of UAE banks: a three-stage analytical framework," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 24(3/4), pages 556-598.
    • Handle: RePEc:ids:ijbpma:v:24:y:2023:i:3/4:p:556-598
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=132344
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbpma:v:24:y:2023:i:3/4:p:556-598. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=3 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.