Productivity Growth, Efficiency Change, & Technical Progress of a Corporate Sector in Bangladesh: A Malmquist Output Productivity Index Approach

Abstract

The purpose of this study is to estimate the Malmquist productivity change index for a corporate sector in Bangladesh. In addition to estimating the Malmquist productivity change index, the reasons of productivity change are also investigated. The study shows that productivity is increased by 1.3 percent per year over the period 2006-2012. This growth is due to increase in efficiency by 4.1 percent per year and decline in the catching up by 2.7 percent per year. A study of leverage ratios of the productivity growth and the productivity declined industry shows that there is a mismatch between the leverage ratios of the two groups. Moreover, a relationship study shows that the Malmquist productivity change index or its components and the traditional measures of the corporate performance present different aspects of corporate performance. The study suggests using the Malmquist productivity change index as a proxy of corporate performance when checking the effect of leverage on performance and effect of performance on leverage. Finally, the study ends with the suggestions for the managers for the productivity improvements.

An Analysis of Efficiency and Productivity Change in Microfinance Institutions in the European Union: A DEA-MPI Approach

“…The terms efficiency and productivity are often discussed in the context of MFIs and are often used interchangeably. However, according to Sumanth (1998, cited by Uddin, 2015) they are not the same thing: an improvement in efficiency does not necessarily guarantee an improvement in the productivity of an institution. Consequently, while efficiency is measured as a ratio between the actual output generated to its standard output, productivity is measured as the output produced per unit of input consumed, as illustrated respectively below: Productivity trends are defined by the changes of the productivity level over a period of time which can be best described by an index, as this can easily demonstrate the changes in inputs, outputs and productivity rates on the same graph (Kirikal, 2005).…”