IDEAS home Printed from https://ideas.repec.org/a/eme/sefpps/v24y2007i2p115-139.html
   My bibliography  Save this article

Bank ownership and productivity developments: evidence from Turkey

Author

Listed:
  • Ihsan Isik

Abstract

Purpose - This paper analyzes the responsiveness of different ownership forms to changing business environment by drawing on Turkish experience. Design/methodology/approach - This study is conducted in two stages. In the first stage, the paper uses Malmquist index theory, to estimate the total factor productivity change, technological change, efficiency change, pure efficiency change and scale efficiency change indexes for the Turkish banks. In the second stage, utilizing the generalized least regression format, it examines the significance of the productivity differences between different ownership forms after controlling for size and changes in the macro‐economy. Findings - Under the “traditional banking definition,” productivity growth during the period was 1.2 percent for state banks, 3.9 percent for private banks and 14.2 percent for foreign banks. Under the “non‐traditional banking definition,” the productivity gain over the period was 2.9 percent for state banks, 9.5 percent for private banks and 17.0 percent for foreign banks. Research limitations/implications - The future research can extend the data set and may include more explanatory factors to characterize the bank forms that record the fastest productivity growth. Practical implications - Private ownership appears to be more adaptive to new environment. Foreign banks can be used as a policy instrument to induce efficiency and productivity improvements in local banking industries. Liberalization of markets through competition boosts economic performance. Originality/value - In analyzing impacts of reforms, the significance of inter‐temporal change should be tested to better guide regulators, investors and managers.

Suggested Citation

  • Ihsan Isik, 2007. "Bank ownership and productivity developments: evidence from Turkey," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 24(2), pages 115-139, June.
  • Handle: RePEc:eme:sefpps:v:24:y:2007:i:2:p:115-139
    DOI: 10.1108/10867370710756174
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/10867370710756174/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/10867370710756174/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/10867370710756174?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Liu, Hsiang-Hsi & Huang, Chin-Wei & Chiu, Yung-Ho & Huang, Hsiao-Chin, 2015. "Using A Three Stage Super-Sbm Model To Analyze The Influence Of Bank'S Internationalization And Risk On The Operational Efficiency," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 56(2), pages 213-229, December.
    2. Isik, Ihsan & Uygur, Ozge, 2021. "Financial crises, bank efficiency and survival: Theory, literature and emerging market evidence," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 952-987.
    3. Fadzlan Sufian & Muzafar Shah Habibullah, 2010. "Financial Disruptions and the Evolution of Malaysian Banking Sector’s Efficiency: A Non-Stochastic Frontier Approach," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 166-186.
    4. Pavlos Almanidis & Mustafa U. Karakaplan & Levent Kutlu, 2019. "A dynamic stochastic frontier model with threshold effects: U.S. bank size and efficiency," Journal of Productivity Analysis, Springer, vol. 52(1), pages 69-84, December.
    5. Sanyal, Paroma & Shankar, Rashmi, 2011. "Ownership, competition, and bank productivity: An analysis of Indian banking in the post-reform period," International Review of Economics & Finance, Elsevier, vol. 20(2), pages 225-247, April.
    6. Fadzlan Sufian & Muzafar Shah Habibullah, 2012. "Developments in the efficiency of the Malaysian banking sector: the impacts of financial disruptions and exchange rate regimes," Progress in Development Studies, , vol. 12(1), pages 19-46, January.
    7. Huerta, Timothy R. & Thompson, Mark A. & Ford, Eric W. & Ford, William F., 2013. "Implementing electronic lab order entry management in hospitals: Incremental strategies lead to better productivity outcomes," International Journal of Information Management, Elsevier, vol. 33(1), pages 40-47.

    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:eme:sefpps:v:24:y:2007:i:2:p:115-139. 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: Emerald Support (email available below). General contact details of provider: .

    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.