Regulatory reform and productivity change in Indian banking

Casu, B., Ferrari, A. and Zhao, T. (2013) Regulatory reform and productivity change in Indian banking. Review of Economics and Statistics, 95 (3). pp. 1066-1077. ISSN 1530-9142 doi: 10.1162/REST_a_00298

Abstract/Summary

This paper examines the impact of regulatory reform on productivity growth and its components for Indian banks in 1992-2009. We estimate parametric and non-parametric efficiency frontiers, followed by Divisia and Malmquist indexes of Total Factor Productivity respectively. To account for technology heterogeneity among ownership types we utilise a metafrontier approach. Results are consistent across methodologies and show sustained productivity growth, driven mainly by technological progress. Furthermore, results indicate that different ownership types react differently to changes in the operating environment. The position of foreign banks becomes increasingly dominant and their production technology becomes the best practice in the industry.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/28822
Identification Number/DOI	10.1162/REST_a_00298
Refereed	Yes
Divisions	Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
Publisher	MIT Press
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