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Explaining Bank Productivity in Ghana
Author(s) -
Alhassan Abdul Latif,
Biekpe Nicholas
Publication year - 2016
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.2748
Subject(s) - productivity , diversification (marketing strategy) , panel data , malmquist index , economics , index (typography) , total factor productivity , econometrics , business , economic growth , marketing , world wide web , computer science
The objective of this paper is to examine productivity changes among Ghanaian banks. The Malmquist productivity index is employed to estimate total factor productivity changes and its components on a panel of 18 banks from 2003 to 2011. The results indicate that productivity growth was attributable to the catch‐up effect of efficiency changes. We also find productivity growth across three categories of bank size to be driven by efficiency changes. From a panel regression analysis, we identify size, concentration, income diversification and risk as the factors that explain productivity differences among Ghanaian banks. Recommendations for improving bank productivity are derived from the results. Copyright © 2015 John Wiley & Sons, Ltd.