Global financial crisis and productivity changes of banks in UAE: A DEA-MPI analysis
Apr 07, 2017
DOI:
Published in: International Journal of Business and Society
The primary objective of this research is to undertake in-depth evaluation and examination of the productivity change of the Emirati Banking sector for a balanced panel which covers 10 banks operating in UAE for the period 2006-2010, by estimating a non-parametric approach Data Envelopment Analysis. Input-oriented Malmquist indices of productivity change are estimated with DEA to measure total factor productivity (TFP) change. The TFP changes are decomposed into the product of technological change and technical efficiency change (catch-up). The era of our sample is very rich with many aspects that influenced the UAE banking system which cover the global financial crisis era. The empirical results are obtained by running an input-oriented DEA model using the software package, DEAP Version 2.1 (Coelli, 1996). Our results reveal that the banking sector in UAE shown a decline after the financial crisis in 2008. © 2017, Universiti Malaysia Sarawak. All rights reserved.