nep-eff New Economics Papers
on Efficiency and Productivity
Issue of 2015‒03‒27
thirteen papers chosen by

  1. Technical and Scale Efficiency of Tanzanian Saving and Credit Cooperatives By Nyankomo Marwa and Meshach Aziakpono
  2. Technical Efficiency of Shipping Banks: A DEA Approach By Sambracos, Evangelos; Maniati, Marina
  3. Export behaviour of SMEs in the Swedish computer service industry By Falk, Martin; Hagsten, Eva
  4. Performance analysis of logistic processes in construction industry By Csaba Tapler
  5. Contribution of R&D services to added economic value in Estonia By Aaro Hazak; Raul Ruubel
  6. Performance Measurment of State-Owned Banks in Turkish Banking Sector with Grey Relational Analysis Method By S. Öznur Sakinc
  7. Measuring the efficiency of heritage institutions: Example of historic buildings in Czech Republic By Zdenek Patek; Michal Straka
  8. Comparative Analysis of Resource Use Efficiency among Various Production Scale Operators in Cassava-Based Mixed Cropping Systems of Ogun and Oyo States of South west, Nigeria By Obayelu, A. E.; Afolami, C. A.; Agbonlahor, M.U.
  9. Performance Analysis of Banks in Turkey Using CAMEL Approach By Dr. Mikail Altan; Habib Yusufazari; Aykut Bedük
  10. Disentangling Size and Efficiency Effects of Finance: New Evidence from Transition Countries By ayse demir
  11. Testing The Relationship Between Total Quality Management Practices and Performance - An Applied Study at Girne American University By Olgun Çiçek; Hakar Mohammed
  12. Input Diffusion and the Evolution of Production Networks By Carvalho, Vasco M; Voigtländer, Nico
  13. The Effects of Managers’ Characteristics and Perspectives on the Financial Performance of Thai Agricultural Cooperatives By Suwanna Thuvachote; Nuttiporn Phetphong

  1. By: Nyankomo Marwa and Meshach Aziakpono
    Abstract: In measuring technical and scale efficiency of Tanzanian Saving and Credit Cooperatives we used a sample of 103 audited financial statements during 2011. Data envelopment analysis was employed to explore the efficiency scores. The results show that average scores are 42%, 52% and 76% for technical, pure technical and scale efficiencies respectively. Since most of the inefficiencies are either technical or scale in nature, the study recommends increasing the operating scale for smaller firms. Firms operating beyond the optimal scale may need to downsize. Also the managers from technically inefficient firms should reduce the waste of the productive resources by utilizing their inputs more efficiently.
    Keywords: Efficiency, Saving and Credit Cooperatives, data envelopment analysis, Tanzania
    JEL: G21 D2 C5
    Date: 2015
  2. By: Sambracos, Evangelos; Maniati, Marina
    Abstract: The international transportation Industry involves various sectors, shipping being one with particular characteristics which differentiates it from others. Within this scope, commercial banks are one of the main entities that may offer the required funding in a market that is characterized by the need for large amounts of capital and high operating costs. Banks play a significant role and are required to assess a number of factors in order to limit the risk from loans as well as to establish an accurate risk-return ratio. The efficiency of banks involved in the shipping industry is particularly important since it may, on one hand, affect financial growth, and on the other, create systemic crisis that may affect the economy as a whole as it directly affects the borrowing and consequently the financial situation and investment activity the shipping companies. This paper presents an effort to assess the shipping banks’ efficiency, and the determination of those factors which affect their technical efficiency, through the application of Data Envelopment Analysis. The results of this research indicate the factors that affect the efficiency of the shipping banks such as ROA, ROE, total loan loss provision to total loans ratio, total deposits and total assets, providing significant information to be considered by management regarding factors on which they should further focus in order to maintain and/or reinforce technical efficiency.
    Keywords: Efficiency, shipping banks, DEA, finance, profitability.
    JEL: C14 D22 G21
    Date: 2015–01–19
  3. By: Falk, Martin; Hagsten, Eva
    Abstract: Export participation of SMEs in Swedish computer services has increased rapidly over the last decade. Despite the increase, export participation rates of SMEs including micro enterprises remain rather low at 13 percent in 2010. Based on uniquely linked firm-level datasets with full coverage of micro enterprises and sole proprietors, this study investigates the determinants of export participation of Swedish SMEs in the computer service industry. Exports include both goods and services. Estimates based on the conditional logit model show a significantly positive relationship between initial labour productivity and the decision to export. An interesting and new finding is that the magnitude of the relationship between the probability to export and initial labour productivity is low once firm effects are controlled for. Surprisingly, the impact of labour productivity on exporting does not differ between micro enterprises and the remaining SMEs (10-249 employees). Furthermore, skill intensity is significantly related to the probability of exporting with low marginal effects. Overall, labour productivity and skill intensity only explain a small proportion of the export boom of Swedish software SMEs.
    Keywords: exports,productivity,computer service industry,human capital,conditional logit model
    JEL: F14
    Date: 2015
  4. By: Csaba Tapler (Szechenyi Istvan University)
    Abstract: Construction managers are interested in the efficiency of a certain material flow control mechanism applied at construction processes. Realistic strategic planning can only be achieved if the decision makers know the exact value of process efficiency. Therefore the measurement of relevant features and the setup of adequate data collection and representation system are needed. This paper deals with the applicable performance analysis tools and data collection methods regarding different production and material flow control mechanisms operating on construction sites. It is demonstrated, how the activity based costing procedures should be adjusted to the project management system. The effect of the PMFC method choice on different logistic cost factors is described.
    Keywords: material flow control, construction industry, performance analysis, activity based costing
    JEL: L79 D24
    Date: 2014–10
  5. By: Aaro Hazak (Tallinn University of Technology); Raul Ruubel (Tallinn University of Technology)
    Abstract: The role and intensity of knowledge within an economy remains a key success factor for long-term economic growth, increased productivity, competitiveness and socio-economic sustainability. These challenges are particularly important for emerging economies that are yet to catch up frontier knowledge economies. This paper seeks to understand the contribution that R&D services have through added economic value to the GDP in Estonia. Based on the most recent supply and use matrices on the data from year 2009, prepared under the input-output framework of Estonian national accounts, we identify to which extent do the R&D services used in the Estonian economy originate from domestic industries and imports, and how the supplies of R&D services are allocated between intermediate and final uses, including exports. As an output of that analysis we identify the direct contribution of R&D services to added economic value in the Estonian economy to be 0.5% and their primary indirect contribution to be 0.4%. Further indirect effects however exist which need to be quantified under our following studies. Vast majority (93%) of the R&D services used in the Estonian economy appear to be of local origin, generated primarily by companies specialising in R&D services. Export capacity of Estonian R&D services appears to be very limited, contributing 0.2% of Estonian total exports. Overall, we identify that a significant progress is yet to be made to catch up with knowledge frontier countries.
    Keywords: R&D services, GDP, supply and use tables, input-output modelling
    JEL: L80 C67
    Date: 2014–07
  6. By: S. Öznur Sakinc (Hitit University)
    Abstract: Banking sector has a considerable impact on the development and growth of the national economy. Increase in the performance of this sector having an important place in the financial system of country, means to positive effects on the general economy. Today, importance of globalization and private capitalis increasing. But State-owned banks in Turkish Banking Sector have an important share of 30%. The main goal of private banks is profitability, so they don’t support the activities with low return, even though the people need. For these reasons state-owned banks were selected, in this study for measuring their performance. Performance measurement involves the process of assessing and reporting of the business activities in terms of success, effectiveness and timing. Sustainability in Performance Measurement provides a significant instrument for feedback of business for the planning in the next period. Business might develop their own service and product quality and they progress strategies to increase the performances of employees, revise their goals and make some revisions in the budget if it needs.Thus, an increase will be supplied in the efficiency and effectiveness of business. In this study, The Performances of State-owned banks in Turkish Banking Sector are analyzed with grey relational analysis method.In the analysis, four years of financial data is used related with banks between 2010-213 years. These data were analyzed by 15 ration which determine; capital adequacy, liquidity, asset quality and profitability criteria.
    Keywords: Banking Sector, Performance In Banks, Performance Measurement, Grey Relational Analyze Method, State-Owned Banks
    JEL: C67 G21 G29
    Date: 2014–10
  7. By: Zdenek Patek (University of Economics); Michal Straka (University of Economics)
    Abstract: The current society opinion about the public sector is not positive. In general, people perceive the public sphere as an area where the government wastes money or where the public management of non-profit organisations just squanders money provided by the government. We may find this sort of considerations even in the sphere of culture. The goal of this paper is to show that there are a way and a method that can be applied to public institutions for their effective management. It is the application of evaluations in the field of culture which in the future may bring positive results in economic understanding of culture. Culture is often associated with tourism, of which the largest share is the cultural tourism. The main component of cultural tourism is visiting monuments. The basic question in connection with the sights therefore is whether the public manage of these objects is efficient. Data Envelopment Analysis (DEA) is a widely applied tool in efficiency evaluation for public sector, however it has scarcely been put into use in the case of historic building such as castles and palaces. The article is a response to the growing need to measure performance in all forms of public management. The purpose is to suggest some ways in which it is possible to evaluate the relative performance of activities of cultural monuments on the territory of the Czech Republic, and also to consider whether UNESCO is more effective than classical monuments or not. Scientific plan is based on the belief that castle managers should manage historical monument in order to achieve certain results.
    Keywords: Effectiveness, Monuments, Data Envelopment Analysis
    JEL: Z10 H21 M11
    Date: 2014–12
  8. By: Obayelu, A. E.; Afolami, C. A.; Agbonlahor, M.U.
    Abstract: The efficiency with which farmers use available resources is very important in agricultural production. This study examines the resource use efficiency of cassava-based mixed crop farmers in Ogun and Oyo States, Nigeria. Cross-sectional data were collected from 265 cassava-based farmers (150 in Ogun State and 115 in Oyo State) using a multistage sampling technique. Descriptive statistics, production elasticity from Cobb-Douglas production function and marginal analysis of resource utilization were some of the analytical tools used in the study. The mean farm size cultivated in Ogun State was 2.24ha while in Oyo State, it was 1.59ha. There was under-utilization fertilizer in Ogun State and land cultivated in Oyo State. Producers in the two states are inefficient in their use of resources but there exist enough potential to increase cassava output in the areas. This can be actualized by cropping larger hectares of land, regulated usage of higher quantities of fertilizers and the provision of labour saving devices which would help reduce labour requirements and enhance efficiency.
    Keywords: Cassava-based, efficiency, mixed crop, Nigeria and resource-use, Crop Production/Industries, Resource /Energy Economics and Policy,
    Date: 2013–09
  9. By: Dr. Mikail Altan (Selçuk University İktisadi ve İdari Bilimler Fakültesi); Habib Yusufazari (Selcuk University Institute of Social Sciences); Aykut Bedük (Selçuk University İktisadi ve İdari Bilimler Fakültesi)
    Abstract: This study attempts to extensively investigate the performance and financial soundness of state-owned and private-owned banks in community of Turkish banks for the period 2005-12. We have chosen one of the most popular methods for measuring banking performance, the CAMEL approach, which is an acronym for the terms, Capital adequacy, Asset quality, Management quality, Earnings quality and Liquidity. This approach was initially adopted by the Federal Financial Institution Examination Council on November 13th, 1979; then adopted by the National Credit Union Administration in October 1987 in the U.S.A. After selecting the model, we have chosen three State-Owned banks and twelve Private-Owned banks from the Turkish banking sector, which represent more than seventy percent of the banking system in terms of total assets. For our purpose evaluating data for eight years, these data were analyzed by calculating 23 ratios related to CAMEL Model. The results indicated that on the overall performance, in the CAMEL rating model Ziraat Bank was in top position followed by Ak Bank and Vakif Bank. Tekstil Bank had the lowest rank in most positions. It was also observed that there is a significant difference between performance of state-owned and private-owned in Turkish banking system.
    Keywords: Banking, CAMEL Approach, Performance Analysis
    JEL: G21
    Date: 2014–12
  10. By: ayse demir (university of leicester)
    Abstract: This paper aims to shed light on the role of financial development on the growth dynamics of transition countries. Particularly, the impacts of several financial development indicators (in terms of size and efficiency) on the income level in 25 transition economies and two subgroups with varying intensities of socio-economic development are empirically examined. The countries of interest tend to have weaker financial system in comparison with the advanced markets. Subgroups are formed for 16 Central and Eastern Europe (CEE) transition economies and 9 former Soviet Union (CIS) members in order to conduct panel data estimations with a time period of 1990 - 2012. Findings, clearly suggest that, improvements in the financial system (size measurements) are highly associated with rising income levels for all country groups. Increase in liberalization of interest rates, private credit and banking lending affect the income level in the CEE lower than in the CIS. According to results, high interest rate spreads (efficiency indicator) negatively affect economic growth and remains statistically significant even if size measurements are included in the regression for both group of countries, indicating that an unsubstantial increase in the size of financial intermediation does not affect growth unless it is also followed by banking efficiency developments and rising competition in the banking sector.
    Keywords: economic growth, transition economies, panel data, financial development
    JEL: F39
    Date: 2014–10
  11. By: Olgun Çiçek (Girne American University); Hakar Mohammed (Girne American University)
    Abstract: Universities and institutions of higher education have not had transaction of competing for market share. However more recently, the trend is changing and to survive both private and public institutions must not only attract and retain a sizable number of students and staff but also provide qualitative educational services. In order to survive in the market, Total Quality Management practices already being applied in the corporate world is gradually finding its way into higher education management. This empirical research examines the relationship between total quality management (TQM) practices and performance at Girne American University (GAU). Five determinates of TQM practices were identified which includes Leadership, Strategic quality planning, Customer focus, Training, and Employee Involvement. The quantitative data were obtained through a survey of 118 students at GAU. This study supports the hypotheses that there is a different in outcomes when TQM is adopted at university. In addition, there is a positive relationship between TQM practices and university performance level.
    Keywords: TQM, TQM and Higher Education, TQM Practices, University Performance
    JEL: M19 I23
    Date: 2014–05
  12. By: Carvalho, Vasco M; Voigtländer, Nico
    Abstract: The adoption and diffusion of inputs in the production network is at the heart of technological progress. What determines which inputs are initially considered and eventually adopted by innovators? We examine the evolution of input linkages from a network perspective, starting from a stylized model of network formation. Producers direct their search for new inputs along vertical linkages, screening the network neighborhood of existing suppliers to identify potentially useful inputs. A subset of these is then adopted, following a tradeoff between the benefits from input variety and the costs of customizing new inputs. Guided by this framework, we document a novel stylized fact at both the sector and the firm level: producers are more likely to adopt inputs that are already used – directly or indirectly – by their current suppliers. In particular, using disaggregated input-output data, we show that initial network proximity of a sector in 1967 significantly increases the likelihood of adoption throughout the subsequent four decades. A one-standard deviation decrease in network distance is associated with an increase in the adoption probability by one third to one half. Similarly, U.S. firms are significantly more likely to develop new input linkages among their suppliers’ network neighborhood. Our results imply that the existing production network plays a crucial role in the diffusion of inputs and the evolution of technology.
    Keywords: directed network search; dynamics of production networks; input adoption
    JEL: C67 D57 L23 O33
    Date: 2015–03
  13. By: Suwanna Thuvachote (Department of Cooperatives, Faculty of Economics, Kasetsart University); Nuttiporn Phetphong (Kasetsart University)
    Abstract: Over the last few decades, cooperatives in Thailand have become larger, more complicated and market oriented. As a result, demand for high-quality managers in cooperatives increases. A manager who understands his or her duties and functions and with good personality, responsibility, relationship with others is a great asset of a cooperative. This paper, empirically tests the hypothesis that the characteristics and perspectives of managers affect the performance of cooperative specifically, the financial performance. Two sets of data are used. The first data set is 2011 annual cooperative financial information from Cooperative Auditing Department. The second data set is from a survey of the managers of agricultural cooperatives using mailed questionnaire. A total of 421 self-administered questionnaires were distributed to the managers of all large agricultural cooperatives in Thailand (those with more than 1,000 members). Of the 421 managers, 258 responded, and 255 were usable. Regression analysis is applied to test the hypothesis. The study results show that overall, the managers’ characteristic and perception variables used in the model have limited explanatory strength on financial performance of the cooperatives, both in terms of return on assets and return on equity. Despite the limitation, the experiences as cooperative managers, his or her participation in financial training program and perception on cooperative principles could positively increase the return on assets of the society although the magnitude is quite small.
    Keywords: managers, financial performance, agricultural cooperatives
    Date: 2014–05

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