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Malmquist indices of productivity change in Portuguese banking: The deregulation period

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  • João Rebelo
  • Victor Mendes

Abstract

This paper will evaluate productivity change in Portuguese banking using the Malmquist productivity index. The results show that between 1990 and 1997, banks in Portugal witnessed increased productivity and strong technological progress. Both small and large banks experienced higher productivity and technological change scores, while mid-sized institutions are putting more effort into catching-up policies. Rural banks have experienced strong productivity growth and are catching up with the best practices but lower levels of technological change. Urban banks show higher productivity growth and technological change levels. Government-owned banks have experienced lower levels of productivity change. Finally, the asset per employee ratio shows a positive correlation with the productivity scores, suggesting that this simple index is a good proxy for productivity. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • João Rebelo & Victor Mendes, 2000. "Malmquist indices of productivity change in Portuguese banking: The deregulation period," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(3), pages 531-543, August.
    • Handle: RePEc:kap:iaecre:v:6:y:2000:i:3:p:531-543:10.1007/bf02294970
    DOI: 10.1007/BF02294970
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    2. Aparna Bhatia & Megha Mahendru, 2016. "Non-parametric Analysis of Technical Efficiency of Public Sector Banks (PSBs) in India," Global Business Review, International Management Institute, vol. 17(2), pages 318-331, April.
    3. Alves, André Bernardo & Wanke, Peter & Antunes, Jorge & Chen, Zhongfei, 2020. "Endogenous network efficiency, macroeconomy, and competition: Evidence from the Portuguese banking industry," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).
    4. Riyanka Baral & Debasis Patnaik, 2023. "Bank efficiency and governance: Evidence from Indian banking," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(3), pages 957-985, September.
    5. Felisitas Defung & Ruhul Salim & Harry Bloch, 2017. "Economic liberalization and sources of productivity growth in Indonesian Banks: is it efficiency improvement or technological progress?," Applied Economics, Taylor & Francis Journals, vol. 49(33), pages 3313-3327, July.
    6. M. Ariff & Viverita, 2008. "On productivity performance gains of Indonesian firms," CARF F-Series CARF-F-136, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    7. Sunil Kumar, 2013. "Banking reforms and the evolution of cost efficiency in Indian public sector banks," Economic Change and Restructuring, Springer, vol. 46(2), pages 143-182, May.
    8. Sami Ben Naceur & Ms. Magda E. Kandil, 2013. "Basel Capital Requirements and Credit Crunch in the MENA Region," IMF Working Papers 2013/160, International Monetary Fund.
    9. Adnan Kasman & Saadet Kasman & Duygu Ayhan & Erdost Torun, 2013. "Total factor productivity and convergence: evidence from old and new EU member countries' banking sectors," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(sup1), pages 13-35, June.
    10. Sunil Kumar & Rachita Gulati, 2009. "Did efficiency of Indian public sector banks converge with banking reforms?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 56(1), pages 47-84, March.
    11. Wen-Cheng Lu & Ting-Kun Liu, 2010. "Malmquist Indices Of R&D Productivity Growth In Taiwanese Ic-Design Industry," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 4(1), pages 105-114.
    12. Andrés Arias, 2003. "U.S. Business Cycle Volatility And Banking Productivity," Documentos CEDE 3668, Universidad de los Andes, Facultad de Economía, CEDE.
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    15. Marko Primorac & Zvonimir Troskot, 2005. "Measuring the efficiency and productivity of the Croatian banks with Malmquists index of change of total factor productivity," Financial Theory and Practice, Institute of Public Finance, vol. 29(4), pages 309-325.

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