Malmquist indices of productivity growth for islamic and conventional banks in Malaysia.

This paper studies the total factor productivity (TFP) of banks in Malaysia with the emphasis on comparing the relative productivities of Islamic and Conventional banks. The Malmquist index approach is used to decompose productivity growth into technical efficiency and technological change. The prod...

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Main Authors: Yahya, Mohamed Hisham, Muhammad, Junaina, Abdul Hadi, Abdul Razak
Format: Article
Language:English
English
Published: David Publishing Company, USA 2010
Online Access:http://psasir.upm.edu.my/id/eprint/15530/
http://psasir.upm.edu.my/id/eprint/15530/1/Malmquist%20indices%20of%20productivity%20growth%20for%20islamic%20and%20conventional%20banks%20in%20Malaysia.pdf
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author Yahya, Mohamed Hisham
Muhammad, Junaina
Abdul Hadi, Abdul Razak
author_facet Yahya, Mohamed Hisham
Muhammad, Junaina
Abdul Hadi, Abdul Razak
author_sort Yahya, Mohamed Hisham
building UPM Institutional Repository
collection Online Access
description This paper studies the total factor productivity (TFP) of banks in Malaysia with the emphasis on comparing the relative productivities of Islamic and Conventional banks. The Malmquist index approach is used to decompose productivity growth into technical efficiency and technological change. The productivity growth is measured and decomposed into technical change and efficiency change. The efficiency change is further decomposed into pure efficiency change and scale efficiency. It is found that Islamic banks’ productivity growth is limited by its lack of technological change compared to its conventional counterparts. Nonetheless, both types of banks are operating at the correct level in terms of scale or size.
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institution_category Local University
language English
English
last_indexed 2025-11-15T08:03:21Z
publishDate 2010
publisher David Publishing Company, USA
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spelling upm-155302015-10-30T00:35:54Z http://psasir.upm.edu.my/id/eprint/15530/ Malmquist indices of productivity growth for islamic and conventional banks in Malaysia. Yahya, Mohamed Hisham Muhammad, Junaina Abdul Hadi, Abdul Razak This paper studies the total factor productivity (TFP) of banks in Malaysia with the emphasis on comparing the relative productivities of Islamic and Conventional banks. The Malmquist index approach is used to decompose productivity growth into technical efficiency and technological change. The productivity growth is measured and decomposed into technical change and efficiency change. The efficiency change is further decomposed into pure efficiency change and scale efficiency. It is found that Islamic banks’ productivity growth is limited by its lack of technological change compared to its conventional counterparts. Nonetheless, both types of banks are operating at the correct level in terms of scale or size. David Publishing Company, USA 2010-11 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/15530/1/Malmquist%20indices%20of%20productivity%20growth%20for%20islamic%20and%20conventional%20banks%20in%20Malaysia.pdf Yahya, Mohamed Hisham and Muhammad, Junaina and Abdul Hadi, Abdul Razak (2010) Malmquist indices of productivity growth for islamic and conventional banks in Malaysia. Journal of Modern Accounting and Auditing, 6 (11). pp. 1-10. ISSN 1548-6583 English
spellingShingle Yahya, Mohamed Hisham
Muhammad, Junaina
Abdul Hadi, Abdul Razak
Malmquist indices of productivity growth for islamic and conventional banks in Malaysia.
title Malmquist indices of productivity growth for islamic and conventional banks in Malaysia.
title_full Malmquist indices of productivity growth for islamic and conventional banks in Malaysia.
title_fullStr Malmquist indices of productivity growth for islamic and conventional banks in Malaysia.
title_full_unstemmed Malmquist indices of productivity growth for islamic and conventional banks in Malaysia.
title_short Malmquist indices of productivity growth for islamic and conventional banks in Malaysia.
title_sort malmquist indices of productivity growth for islamic and conventional banks in malaysia.
url http://psasir.upm.edu.my/id/eprint/15530/
http://psasir.upm.edu.my/id/eprint/15530/1/Malmquist%20indices%20of%20productivity%20growth%20for%20islamic%20and%20conventional%20banks%20in%20Malaysia.pdf