Measuring Technical Efficiency and Productivity Change in Nigerian Banking sector: A Comparision of Nonparametric and Parametric Techniques

Simple item page
dc.contributor.authorOsuagwu, E.S
dc.contributor.authorIsola, W.A
dc.contributor.authorNwaogwugwu, I.C
dc.date.accessioned2019-03-26T10:28:53Z
dc.date.available2019-03-26T10:28:53Z
dc.date.issued2018
dc.descriptionStaff Publicationsen_US
dc.description.abstractThis study estimates technical efficiency and total factor productivity change in the Nigerian banking sector for the period 2005 – 2014, which encapsulates the post consolidation era and subsequent regime of banking reforms aimed at stabilizing the sector from the effects of financial crisis. The study applies both non-parametric Data Envelopment Analysis (DEA) and parametric Stochastic Frontier Approach (SFA), using Malmquist Productivity Index, and error component production function respectively, to ascertain if any significant variation in efficiency exists on a sample of twelve banks covering over 80% of total bank assets in Nigeria. The theoretical intermediation approach is applied for selection of input and output variables. The input variables considered are total deposits, total equity and operating expenses including staff costs, and output variables are loans and operating income, which accounts for off-balance-sheet items such as non-interest or fee-based income. Findings reveal that the mean technical efficiency under SFA and total factor productivity change in DEA decreases as bank output move towards non-interest or fee-based income. Although the magnitude differs, both SFA and DEA follow similar direction for technical efficiency and total factor productivity change. Study implications suggest that policy makers should be concerned about arbitrariness in bank’s ability to earn fee-based income, which portends high cost of banking services in the long-run.en_US
dc.identifier.citationOsuagwu, E.S, Isola, W.A, and Nwaogwugwu, I.C (2018). Measuring Technical Efficiency and Productivity Change in Nigerian Banking sector: A Comparision of Nonparametric and Parametric Techniques. African Development Review, Vol.30(4), 490-501p.en_US
dc.identifier.urihttps://onlinelibrary.wiley.com/doi/abs/10.1111/1467-8268.12357
dc.identifier.urihttps://www.researchgate.net/.../329758427_Measuring_Technical_Efficiency_and_Pro...
dc.identifier.urihttps://ir.unilag.edu.ng/handle/123456789/3991
dc.language.isoenen_US
dc.publisherAfrican Development Review, Abidjanen_US
dc.relation.ispartofseriesAfrican Development Review, Abidjan;Vol.30(4)
dc.subjectBank Efficiencyen_US
dc.subjectData Envelopment Analysisen_US
dc.subjectMalmquist Productivity Indexen_US
dc.subjectStochastic Frontier Approachen_US
dc.subjectResearch Subject Categories::SOCIAL SCIENCES::Business and economics::Economicsen_US
dc.titleMeasuring Technical Efficiency and Productivity Change in Nigerian Banking sector: A Comparision of Nonparametric and Parametric Techniquesen_US
dc.typeArticleen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Measuring Technical Efficiency and productivity Change in Nigerian Banking Sector.pdf
Size:
652.46 KB
Format:
Adobe Portable Document Format
Description:
Full Texts
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Economics-Scholarly Publications