Size and Total Factor Productivity Growth in the Malaysian Islamic Banking Industry: a Non-Parametric Malmquist Productivity Index Test
By applying the Malmquist Total Factor Productivity Index V I ) , this paper attempts to provide new empirical evidence on the performance of Malaysian Islamic banks over the period of 2001- 2004. Our results suggest that Malaysian Islamic banks productivity have exhibited an inverted U-shaped b...
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Sains Islam Malaysia
2012
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| Subjects: | |
| Online Access: | http://ddms.usim.edu.my/handle/123456789/5333 |
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| Summary: | By applying the Malmquist Total Factor Productivity Index V I ) , this
paper attempts to provide new empirical evidence on the
performance of Malaysian Islamic banks over the period of 2001-
2004. Our results suggest that Malaysian Islamic banks productivity
have exhibited an inverted U-shaped behaviour during the period of
our study. We found that the domestic banks have exhibited higher
productivity growth compared to its foreign counterparts. The
decomposition of the productivity change index suggests that
Malaysian Islamic banks productivity progress was mainly attributable
to technological change rather than efficiency change during the early
years, while the opposite was true during the latter year. Further
decomposition of the efficiency change index into its pure technical
and scale efficiency components suggest that, pure technical efficiency
has largely resulted in Malaysian Islamic banks efficiency increase. Our
results indicate that while the majority of Malaysian Islamic banks
experiencing productivity progress due to technological progress came
from the medium banks group, on the other hand, the majority of
Malaysian Islamic banks that experienced productivity regress due lo
technological regress came from the small banks group. |
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