• Title/Summary/Keyword: Envelopment

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The Impact of the Bank Regulation and Supervision on the Efficiency of Islamic Banks

  • MOHD NOOR, Nor Halida Haziaton;BAKRI, Mohammed Hariri;WAN YUSOF, Wan Yusrol Rizal;MOHD NOOR, Nor Raihana Asmar;ZAINAL, Nurazilah
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.747-757
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    • 2020
  • This study investigates the impact of bank regulation and supervision on the efficiency of banking sectors on 108 Islamic banks from 26 countries offering Islamic banking and finance products and services. The technical efficiencies of individual Islamic banks have been analyzed using the data envelopment analysis method (DEA). The ordinary least square estimation method is employed to examine the impact of country supervision and regulation on the technical efficiency of Islamic banks. The empirical findings suggest that supervisory power, activity restrictions and private monitoring positively influence the efficiency of Islamic banks. The study revealed that Islamic banks that are operating in Middle East and North Africa (MENA) and middle-income countries are more technically efficient given the less stringent rules on capital requirement and we found that there is statistically significant evidence that higher capital requirements are negatively associated with the efficiency of Islamic banks. The empirical findings of this study are expected to help policy-makers and government officials to better understand how their decisions affect the performance.

Analysing Productivity Change in Vietnamese Garment Industry Using Global Malmquist Index

  • MAI, Thanh Khac;NGUYEN, Van;VU, Trang Huyen Thi
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.1033-1039
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    • 2020
  • Vietnam is conducting an export-led growth model and labour-intensive industries contributing majorly to the total export value. In the context of Industry 4.0, the labour-based industries are significantly affected; hence, enhancing productivity is the key measure to maintain these industries. The garment industry contributes significantly to the total export value of Vietnam. Based on meta-frontier framework, the approach of data envelopment analysis is used to measure technical efficiency of Vietnamese garment firms and the global Malmquist TFP index is utilised to identify productivity change and its components including efficiency, technology and technical gaps between different groups of firms. The data of Vietnamese garment firms from 2013 to 2018 collected from the Vietnam General Statistic Office is used in this study. The results show that: (i) The total factor productivity of Vietnamese garment firms growth, technical progress is the main contributor; (ii) The private garment sector is the leading group; (iii) There is a large technological gap among Vietnamese garment sectors. The private and FDI garment firms have experienced a growth in all components of total factor productivity change. Meanwhile, technological progress change is the main reason to constrain the productivity growth of state-owned garment firms.

Evaluation and Comparison of Bank Efficiency in Cross-Strait after ECFA

  • LIAO, Chang Sheng
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.10
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    • pp.783-793
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    • 2020
  • The purpose of this study is to investigate whether the ECFA impacted the efficiency of banks in China and Taiwan from 2008 to 2017. This study follows Seiford and Zhu (2002), who recommend using the standard data envelopment analysis model to measure performance by increasing the desirable outputs and decreasing the undesirables. The finding was that overall technical efficiency increased from 2012 to 2017, reaching 0.575, 0.652, 0617, 0.689, 0.701 and 0.74, respectively. This result implies bank efficiency did indeed improve after China and Taiwan signed the ECFA cooperation agreement. The study found that the mean technical efficiency was 0.8756 in China, greater than Taiwan's mean of 0.3511, implying that Chinese banks experienced a greater increase in efficiency after signing the EFCA. One possible reason explored in this study is that China's economy is currently growing at the highest rate in the world, and the banks' efficiency has benefited from greater economic growth. This suggests that cross-strait sustained negotiations to consummate an agreement on trade in the services will be a very important mission in the future. This result also provides significant evidence suggesting that not accounting for undesirable output while estimating the evolution of the model may seriously distort efficiency results.

Evaluating Managerial Efficiency of Fisheries Cooperatives in Korea : Data Envelopment Analysis (한국 수산업협동조합의 경영효율성 평가 : 자료포락분석)

  • 최정윤;남수현;강석규
    • The Journal of Fisheries Business Administration
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    • v.34 no.2
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    • pp.109-129
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    • 2003
  • The purpose of this study is to evaluate the managerial efficiency of fisheries cooperatives in Korea by using data envelopment Analysis(DEA). The DEA method is a relative evaluation method on the basis of linear programming. Also, it is known as a useful method for the evaluation of not-for-profit organizations which cannnot be measured by mere monetray units for their performances. The 50 units have been taken for the purpose of analysis. All of the units are homogeneous groups, and the produce multiple services with multiple inputs. Input variables are a number of employee, fixed assets, and business managerial costs. Output variables include a number of deposits, a number of loans, a total deposits, a total loans, and operational income for one year. The empirical results of this study are as follows. First, the average technical efficiency showed 82.35% which revealed about 17.65% of non-efficiency in 2001. Second, in 15 DMUs, the overall inefficiency is mainly attributed to their efficient operations or management. To be opposed, in 18 DMUs, the overall inefficiency is mainly attributed to their scale efficiency. Third, efficiency ranking results by DEA do not agree with the ratio analysis by fisheries cooperatives. Fourth, average efficiency level by year was improving gradually by 0.7408 in 1999, 0.8023 in 2000, and 0.8235 in 2001 at significant 10% level.

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Evaluation of Operation Efficiency in the Korean RCC/RSC Using DEA and Fuzzy-Logic (DEA와 퍼지추론을 이용한 RCC/RSC별 운영효율성 평가)

  • Jang Woon-Jae;Keum Jong-Soo
    • Proceedings of KOSOMES biannual meeting
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    • 2005.05a
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    • pp.67-72
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    • 2005
  • This paper aims to evaluates the operation efficiency with two inputs and four outputs with the use of DEA(Data Envelopment Analysis), a qualitative data analysis with the use of expert assessment in Korean RCC(Rescue Co-ordination Center)/RSC(Rescue Sub-Center). The tool for integrating heterogeneous data is model that applies fuzzy logic to decision support system In this paper, therefor, RCC/RSC evaluates the priority for operation efficiency. The result are found as order as Inchon, Mokpo, Jeju, Donghae, Busan, Pohang, Yosu, Sokcho, Tongyeong, Ulsan, Taean, Gunsan RSC.

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Impact of energy efficiency improvement on greenhouse gas in off-season tomato farming: Evidence from Punjab, Pakistan

  • Ali, Qamar;Khan, Muhammad T.I.;Khan, Muhammad N.I.
    • Advances in Energy Research
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    • v.5 no.3
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    • pp.207-217
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    • 2017
  • Energy consumption in agriculture is responsible for greenhouse gas emission but it can be reduced after efficient utilization of energy inputs. Therefore, the present study aims for the estimation of energy efficiency and extent of greenhouse gas reduction after benchmarking of inefficient farms in off-season tomato in Punjab province of Pakistan. Primary data were collected from 70 farmers with simple random sampling. By using data envelopment analysis, the average value of technical, pure technical and scale efficiency was 0.80, 0.92 and 0.87, respectively while increasing, constant and decreasing return to scale was observed in 33, 26 and 11 farmers, respectively. Total input energy was reduced by $12,688.91MJ\;ha^{-1}$ (13.89%) if inefficient farms used the energy inputs according to recommendations or benchmarking. A major portion of energy saving comes from fertilizers (68.79%) followed by diesel (15.70%), chemicals (5.91%), machinery (4.37%) and water (4.00%). Total greenhouse gases reduction was $499.17kg\;CO_2\;eq.ha^{-1}$ (14.57%) as a result of improvement in energy efficiency or benchmarking of inefficient farms. Agricultural extension staff should visit the vegetable farms on regular basis and give necessary information about efficient utilization of energy inputs. The government should create awareness about the optimum use of input through seminars and pamphlets.

Efficiency Comparison and Performance Targets for Academic Departments in the Local Private College Using DEA (자료포락 분석을 이용한 지방 사립 전문대학교 학과의 효율성 비교 및 성과 달성 목표수준 정의)

  • Bae, Jae-Ho
    • Journal of Korean Institute of Industrial Engineers
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    • v.39 no.4
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    • pp.298-312
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    • 2013
  • This paper compares efficiency results and performance targets for academic departments in a local private college using DEA (Data Envelopment Analysis). Because of an aging society, a smaller school-age population entering colleges, and enhanced accreditation standards by the government, colleges and universities are not recruiting and retaining sufficient students and therefore are struggling for survival. In contrast to popular four-year undergraduate universities concentrated in Seoul and its satellite cities, retaining students is critical for the survival of local private colleges in poor or remote regions. Therefore, it is very important to identify the factors involved in the retention of students in the various departments of a college. However, given the different characteristics of the departments, it is difficult to identify one unique or robust set of standards to evaluate their performance. The purpose of this paper is to maximize student retention capabilities by ensuring that additional resources are assigned to efficient DMUs, while, inefficient DMUs are given benchmarked targets. Based on previous studies and college accreditation standards, this paper presents indices to be used in evaluating the efficiency of academic departments in a college. In evaluating relative efficiency, this paper uses the output-oriented BCC model. To define target levels to be achieved for efficient DMU, a multi-stage DEA procedure is used.

A Framework for Deriving Investment Priority in National Defense R&D - Using DEA based on TRA - (국방연구개발 투자우선순위 도출 프레임워크 - TRA 방법론에 기반한 DEA 중심으로 -)

  • Yu, Donghyun;Lim, Dongil;Seol, Hyeonju
    • Journal of the Korea Institute of Military Science and Technology
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    • v.21 no.2
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    • pp.217-224
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    • 2018
  • The purpose of this study is to evaluate the future potential value of CTE(Critical Technology Element)s that are evaluated to be low in TRA(Technology Readiness Assesment) and to present investment prioritization technologies in defense R&D(Research and Development) based on them. To do this, we used the DEA(Data Envelopment Analysis) method, which is useful in evaluating the efficiency of the organization. Specifically, we suggest a systematic framework to evaluate the future value of CTEs by setting the CTEs derived from the TRA process to DMU(Decision Making Unit)s, the cost and time required to develop each CTE as the input factor of the DEA and the effects of the development of each CTE as the output factor of the DEA respectively. We also conducted an illustrative case study on radar technologies to demonstrate the usefulness of the proposed approach.

Correlation Analysis between Internal Transactions and Efficiency of Chaebol Affiliates Using Social Network Analysis (사회연결망분석을 이용한 대기업집단 내부거래와 효율성의 상관분석)

  • Na, Gi Joo;Cho, Nam Wook
    • Journal of Information Technology Services
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    • v.14 no.3
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    • pp.49-65
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    • 2015
  • As South Korean large business groups, also known as Chaebol, have broadened their influence in the domestic economy, it is important to analyze the influence of internal transactions among Chaebol affiliates on their performance. In this paper, relationship between internal transactions and efficiency of Chaebol affiliates has been analyzed. Top five Chaebol groups in South Korea are selected; they include Samsung, Hyundai Motors, LG, SK, and Lotte group. Based on internal transactions among affiliates, social networks are constructed for each Chaebol group to analyze centrality, network structures and cliques. Data Envelopment Analysis (DEA) was conducted to examine the efficiency of the Chaebol affiliates. Then, correlations between the degree centrality and the efficiency of Chaebol affiliates were analyzed, and the network structures of Chaebol groups are presented. The result shows that positive correlations between degree centrality and efficiency are observed among four Chaebol Groups. This paper shows that the Social Network Analysis (SNA) techniques can be used in the empirical research for the analysis of internal transactions of Chaebol groups.

Analysis of Efficiency Gap of Local Governments' Aged Welfare Institutions in Gyeonggi-do Province (경기도 지역 지방자치단체 노인복지시설의 효율성 격차 분석)

  • Yoon, Eui-Young
    • Journal of the Korean association of regional geographers
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    • v.15 no.6
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    • pp.774-788
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    • 2009
  • This research analyzed the relative efficiency of 27 local governments' aged welfare institutions and facilities in Gyeonggi-do Province by using Data Envelopment Analysis. The results show that 12 local governments' aged welfare institutions are relatively inefficient as compare to their reference groups, meaning that there is efficiency gap among localities. It also appears that the most influential input and output elements are the budget for the aged and the number of the aged welfare institutions and facilities, relatively. However, the influential elements differ from one locality to another.

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