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International Journal of Data Envelopment Analysis and *Operations Research*
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International Journal of Data Envelopment Analysis and *Operations Research*. 2014, 1(3), 40-48
DOI: 10.12691/ijdeaor-1-3-1
Open AccessArticle

Global Economic Crisis and Productivity Changes of Banks in India: A DEA-MPI Analysis

R. Madhanagopal1, and R. Chandrasekaran1

1Department of Statistics, Madras Christian College, Chennai, Tamil Nadu, India

Pub. Date: September 12, 2014
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Cite this paper:
R. Madhanagopal and R. Chandrasekaran. Global Economic Crisis and Productivity Changes of Banks in India: A DEA-MPI Analysis. International Journal of Data Envelopment Analysis and *Operations Research*. 2014; 1(3):40-48. doi: 10.12691/ijdeaor-1-3-1

Abstract

The present study explores the relationship between Global economic crisis (GEC) and productivity growth of Indian banking sector using data envelopment analysis based malmquist index (DEA-MI) for the study period 2005 to 2012, which are partition into three different period viz., pre-crisis, crisis and post-crisis. The empirical result showed that total factor productivity (TFP) for pre and crisis regressed by 7 and 0.6% respectively and post by a slight progress of 0.3%. Comparing technical and technological efficiency changes over the study periods, during pre-crisis, improvements in productivity of Indian banking sector was influenced by technological innovation whereas it went down and technical efficiency influenced the productivity in crisis and post-crisis periods. This may be due to effect of economic crisis and banks would have struggled for survival and hard to concentrate on new technological innovations.

Keywords:
productivity changes Malmquist index data envelopment analysis Indian banking sector Global economic crisis technical and technological efficiency

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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