IDEAS home Printed from https://ideas.repec.org/a/ids/ijpqma/v11y2013i1p73-95.html
   My bibliography  Save this article

Measuring and decomposing productivity change using Hicks-Moorsteen index numbers: evidence from Indian banks

Author

Listed:
  • Hitesh Arora
  • Padmasai Arora

Abstract

Bank productivity improvement is a vital instrument for economic development, and effective policy making in this area requires information regarding main drivers of productivity growth. Hicks-Moorsteen (H-M) index numbers as given by O'Donnell is a powerful method for measuring and decomposing total factor productivity (TFP) changes. This paper examines year-to-year TFP changes experienced by Indian banks (public and private) in the post liberalisation era (1991-1992 to 2007-2008) using H-M index numbers. The main finding of the study is that productivity (TFP) in Indian banks has remained stagnant since 1991 to 1992 with no significant differences observed in the three sub-periods studied and type of ownership has a significant effect on scale efficiency in Indian banks. Stagnation in productivity in Indian banks, resulting from technological regress, is a cause of concern and policy setting should be reshaped and re-oriented towards productivity enhancement.

Suggested Citation

  • Hitesh Arora & Padmasai Arora, 2013. "Measuring and decomposing productivity change using Hicks-Moorsteen index numbers: evidence from Indian banks," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 11(1), pages 73-95.
    • Handle: RePEc:ids:ijpqma:v:11:y:2013:i:1:p:73-95
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=50569
    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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kerstens, Kristiaan & Van de Woestyne, Ignace, 2014. "Comparing Malmquist and Hicks–Moorsteen productivity indices: Exploring the impact of unbalanced vs. balanced panel data," European Journal of Operational Research, Elsevier, vol. 233(3), pages 749-758.
    2. Aparicio, Juan & López-Torres, Laura & Santín, Daniel, 2018. "Economic crisis and public education. A productivity analysis using a Hicks-Moorsteen index," Economic Modelling, Elsevier, vol. 71(C), pages 34-44.
    3. Arjomandi, Amir & Valadkhani, Abbas & O’Brien, Martin, 2014. "Analysing banks’ intermediation and operational performance using the Hicks–Moorsteen TFP index: The case of Iran," Research in International Business and Finance, Elsevier, vol. 30(C), pages 111-125.

    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:ijpqma:v:11:y:2013:i:1:p:73-95. 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=177 .

    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.