Financial development and productive inefficiency: A robust conditional directional distance function approach

Mallick, Sushanta; Matoušek, Roman; Tzeremes, Nickolaos

doi:10.1016/j.econlet.2016.06.019

Cited by 20 publications

(8 citation statements)

References 15 publications

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“…This is because in the countries with poor financial development, loans are mainly through real estate mortgages, which contributes to the decrease in financial market imperfections. This finding is consistent with the previous views of Shen (2013), Beck, Georgiadis, and Straub (2014), Mallick, Matousek, and Tzeremes (2016). In addition, some views argue that there is a positive impact of banking system development (which is measured through the ratio of the domestic credit to the private sector to GDP) on the REM, for example, in the studies by Bunda and Zorzi (2010) Hott (2011), Huang, Leung, andQu (2015), Shen, Lee, Wu, and Guo (2016).…”

Section: Literature Reviewsupporting

confidence: 89%

The financial development and the real estate market in Vietnam: a study in case of the global financial crisis

Nguyen¹,

Bui²

2020

JESI

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This paper is the first empirical evidence for the impact of financial development on the real estate market (REM) in Vietnam. The researchers utilize time series data in Vietnam in the period from 2004:Q3 to 2018:Q4. By using the autoregressive distributed lag (ARDL) model, the paper analyzes the impact of financial development through the banking system development and the stock market development on the REM in the short and long term. The research results are consistent with some previous studies as the impact of financial development on REM is found in the short and long term, and the impact is mainly positive. In particular, the impact of the banking system development on the REM is stronger than the impact of the stock market development on the REM. In addition, the paper also achieves great success in discovering the negative impact of the global financial crisis on the In particular, the impact of the banking system development on the REM is stronger than the impact of the stock market development on the REM in the short and long term, which is a new discovery compared to the previous studies. These findings are significant for the In particular, the impact of the banking system development on the REM is stronger than the impact of the stock market development on the REM in the economies all over the world, especially for a developing country like Vietnam.

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Section: Literature Reviewsupporting

confidence: 89%

The financial development and the real estate market in Vietnam: a study in case of the global financial crisis

Nguyen¹,

Bui²

2020

JESI

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“…Starting with Färe et al (1994), efficiency frontier econometric studies on macroeconomic data using nonparametric approaches (like FDH or DEA) are not new (see, for example, (Henderson and Russell, 2005, Henderson and Zelenyuk, 2007, Kumar and Russell, 2002, Mallick et al, 2016). The purpose of this paper is to provide fully nonparametric estimators of production frontiers and timevariant technical efficiency in a dynamic framework which allows spatial dependence and both observed and latent factors to affect technical efficiency.…”

Section: Introductionmentioning

confidence: 99%

Latent heterogeneity to evaluate the effect of human capital on world technology frontier

Mastromarco

Simar

2021

J Prod Anal

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Although human capital has been recognized as playing important role in spurring productivity growth, its empirical effect remains ambiguous due to the possibility of latent heterogeneity. To reveal the impact of this important driver of economic growth, we propose an alternative empirical methodology, robust frontier in non parametric location-scale models for accommodating simultaneously the problem of model specification uncertainty, latent heterogeneity and cross-section dependence in modelling technical efficiency. We estimate a nonparametric frontier model to define the world technology frontier of 40 countries over the period 1970–2007. Conditional versions of the frontier enables us to investigate the effect of external factors on the production process. One of these factors will allow to measure the openness of the economy of the country and the second will be this latent factor of heterogeneity linked to the absorptive capability and hence to human capital of the country. We have to adjust the methodology to take into account the panel structure of our data set, i.e., handling the time dimension and the cross-sectional dependence affecting the process. Our findings prove that human capital plays an important role in accelerating the technological catch-up (increase in the efficiency) but not on the technological changes (shifts in the frontier). This result seems to confirm the theoretical hypothesis that countries benefit from new technology (technological catch-up) only when they have the ability to exploit it, hence only when they have high level of absorptive capability.

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“…As a result, we assume that time influences banks' inefficiency levels along with the shape and the level of the boundary of the attainable set. These measures enable us to incorporate dynamic effects on the estimated efficiency measures, grasping all the performance changes that are based on different time periods (Mallick et al 2016;Mastromarco and Simar 2018;Tzeremes 2015Tzeremes , 2019. The applied efficiency estimators are most suited in our case since they enable us to identify the indirect effect of the reforms made over different time periods.…”

Section: Introductionmentioning

confidence: 99%

Technological Change and Catching-Up in the Indian Banking Sector: A Time-Dependent Nonparametric Frontier Approach

et al. 2020

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This paper investigates whether there has been any improvement in efficiency convergence of banks in India during the post-reform period considering bank ownership structures, using a balanced panel for 73 banks over the time period 1996–2014. Utilizing nonparametric frontier estimators, we compute time-dependent bank efficiency scores, which allow us to examine the dynamics of technological frontier and catch-up levels of Indian banks, and to explore the convergence patterns in the estimated efficiency levels. Our results signify that the state-owned banks, which dominate the banking activity in India, establish themselves as the best performers, ahead of the private, foreign and cooperative banks during post-2005. Even during the recent global financial crisis period, we find that bank efficiency levels increased, except for foreign banks which have had the greatest adverse impact. The convergence results show that heterogeneity is present in bank efficiency convergence, which points to the presence of club formation suggesting that Indian banks’ efficiency convergence is partly driven by the ownership structure.

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Financial development and productive inefficiency: A robust conditional directional distance function approach

Cited by 20 publications

References 15 publications

The financial development and the real estate market in Vietnam: a study in case of the global financial crisis

The financial development and the real estate market in Vietnam: a study in case of the global financial crisis

Latent heterogeneity to evaluate the effect of human capital on world technology frontier

Technological Change and Catching-Up in the Indian Banking Sector: A Time-Dependent Nonparametric Frontier Approach

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