Multi-Directional Meta-Frontier DEA Model for Total Factor Productivity Growth in the Chinese Banking Sector: A Disaggregation Approach

Zhu, Ning; Baležentis, Tomas; Yu, Zhiqian; Wu, Wenjie

doi:10.15388/20-INFOR397

Informatica

Multi-Directional Meta-Frontier DEA Model for Total Factor Productivity Growth in the Chinese Banking Sector: A Disaggregation Approach

Volume 31, Issue 1 (2020), pp. 185–204

Ning Zhu Tomas Baležentis Zhiqian Yu Wenjie Wu

https://doi.org/10.15388/20-INFOR397

Pub. online: 23 March 2020 Type: Research Article

Open Access

Received
1 March 2019

Accepted
1 November 2019

Published
23 March 2020

Abstract

Departing from conventional TFP index without variable-specific analysis, this paper applies a novel Malmquist productivity index on the basis of the multi-directional efficiency analysis to investigate not only the overall total factor productivity growth, but also the variable-specific productivity growth in the Chinese banking sector. Moreover, considering heterogenous types of banks, the metafrontier framework is taken into account. It is found that the total factor productivity tended to decline in the Chinese banking during 2005–2015 with technological change being the main source of regress. The large state-owned commercial banks performed better than the small-medium commercial banks in terms of total factor productivity growth.

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Biographies

Zhu Ning

ningzhu@scut.edu.cn

N. Zhu obtained his PhD in economics from Jinan University, China, in 2016. He visited the University of Copenhagen, Denmark, during 2014–2016. He is a distinguished research fellow at School of Economics and Commerce, South China University of Technology, China. His research interests include efficiency and productivity analysis, banking management.

Baležentis Tomas

tomas@laei.lt

T. Baležentis is a research professor at Lithuanian Institute of Agrarian Economics and a professor at Vilnius University (Lithuania). He holds PhD degrees from Vilnius University and University of Copenhagen. Dr. Baležentis has published over 120 papers in SSCI/SCI journals. The research activities of Dr. Baležentis span over multi-criteria decision making, agricultural economics, energy economics, and managerial economics. He has published in European Journal of Operational Research, Decision Sciences, Fuzzy Sets and Systems, Energy Economics, Energy Policy and Resource and Environmental Economics.

Yu Zhiqian

yzq_8866@hotmail.com

Z. Yu obtained her PhD in economics from Jinan University, China, in 2014. She visited Business School of Copenhagen, Denmark, during 2012–2013. She is currently an associate professor at School of Economics and Statistics, Guangzhou University, China. Her research interests include efficiency and productivity analysis, public economics.

Wu Wenjie

caswwj@foxmail.com

W. Wu obtained his PhD in economic geography from London School of Economics and Political Science, the UK, in 2013. He is currently a professor at College of Economics, Jinan University, China. His research interests include urban development, spatial economics.

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Keywords

data envelopment analysis total factor productivity multi-directional efficiency analysis metafrontier Chinese banking

Funding

The authors gratefully acknowledge financial supports from the National Social Science Foundation of China (19CJY061), the National Natural Science Foundation of China (71703040), the Humanities and Social Research Project of Ministry of Education of China (17YJC790215, 17JZD013, 18YJC790207), the Natural Science Foundation of Guangdong Province (2018A0303130230), and the Fundamental Research Funds for the Central Universities (2019MS079).

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