MALMQUIST INDEX OF NIGERIAN COMMERCIAL BANKS
Fadipe Moses, ArulogunOlaleye Ola
Abstract
Fadipe Moses, ArulogunOlaleye Ola
Abstract
This work evaluated the efficiency change and productivity change of Nigerian commercial banks between 2002 and 2011. The study made use ofMalmquist Productivity Index (MPI) to measure productivity growth of banks in Nigeria.The results show that the average level of the Malmquist index (ΔTFP)had gone upsignificantly from 0.931 in year 2003 to 1.038 in year 2011, meaning that the TFP had gains over the study period. This was attributed to the significant increase experienced in the TFP-linked indices namely the technical efficiency index (ΔTE) and the technological change index (ΔTECH). The technical efficiency change index (ΔTE) maintained its status at 1.004 and technological change index (ΔTECH), increase from 0.928 to 1.034 in 2011 (or increase of 10.6%). Key words:Malmquist index, efficiency change. Total factor productivity and Intermediation
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This work evaluated the efficiency change and productivity change of Nigerian commercial banks between 2002 and 2011. The study made use ofMalmquist Productivity Index (MPI) to measure productivity growth of banks in Nigeria.The results show that the average level of the Malmquist index (ΔTFP)had gone upsignificantly from 0.931 in year 2003 to 1.038 in year 2011, meaning that the TFP had gains over the study period. This was attributed to the significant increase experienced in the TFP-linked indices namely the technical efficiency index (ΔTE) and the technological change index (ΔTECH). The technical efficiency change index (ΔTE) maintained its status at 1.004 and technological change index (ΔTECH), increase from 0.928 to 1.034 in 2011 (or increase of 10.6%). Key words:Malmquist index, efficiency change. Total factor productivity and Intermediation
Key concepts: Total factor productivity, Malmquist index, Index (typography), Productivity, Technological change, Technical change, Economics, Agricultural economics