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Comparing the Efficiency of Turkish and Azerbaijani Banks: An Application with Data Envelopment Analysis

Author

Listed:
  • Serhat Y ksel

    (Department of International Trade and Management, Konya Food and Agriculture University, Turkey,)

  • Shahriyar Mukhtarov

    (Department of World Economy, Qafqaz University, Baku, Azerbaijan,)

  • Elvin Mammadov

    (Department of Finance, Qafqaz University, Baku, Azerbaijan.)

Abstract

In this paper, we made a comparison about the efficiency of Turkish and Azerbaijani banks. Within this scope, we analyzed 10 biggest banks of both countries regarding asset size. Furthermore, data envelopment analysis (DEA) was used for the data between 2010 and 2014 in this study. As a result of analyzing 5 inputs and 3 outputs, it was determined that Turkish banks are more efficient than Azerbaijani banks. Out of 10 Turkish banks, only T rkiye Ekonomi Bankas was not efficient in 2011 whereas other banks were efficient for all years. On the other hand, it was defined that only 4 Azerbaijani banks were efficient for all years whereas other 6 banks were not efficient for some years during this period.

Suggested Citation

  • Serhat Y ksel & Shahriyar Mukhtarov & Elvin Mammadov, 2016. "Comparing the Efficiency of Turkish and Azerbaijani Banks: An Application with Data Envelopment Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1059-1067.
    • Handle: RePEc:eco:journ1:2016-03-31
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    1. Zhiheng Li & Shuangzhe Liu & Fanda Meng & Milind Sathye, 2019. "Competition in the Indian Banking Sector: A Panel Data Approach," JRFM, MDPI, vol. 12(3), pages 1-16, August.

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    More about this item

    Keywords

    Data Envelopment Analysis; Turkey; Azerbaijan; Banks; Efficiency;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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