Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions

The objective of this study is to examine total factor productivity changes (TFPCH) in Islamic and conventional banks to determine whether they exhibit progression or regression. As earlier studies have focused mainly on productivity in conventional banks rather than Islamic banks, the current stud...

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Main Authors: W. Jubilee, Ribed Vianneca, Kamarudin, Fakarudin, Hussain, Hafezali Iqbal, Abdul Latif, Ahmed Razman, Zainal, Nurazilah
Format: Article
Published: Conscientia Beam
Online Access:http://psasir.upm.edu.my/id/eprint/111634/
https://archive.conscientiabeam.com/index.php/11/article/view/1082
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spelling my.upm.eprints.1116342024-07-19T02:51:12Z http://psasir.upm.edu.my/id/eprint/111634/ Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions W. Jubilee, Ribed Vianneca Kamarudin, Fakarudin Hussain, Hafezali Iqbal Abdul Latif, Ahmed Razman Zainal, Nurazilah The objective of this study is to examine total factor productivity changes (TFPCH) in Islamic and conventional banks to determine whether they exhibit progression or regression. As earlier studies have focused mainly on productivity in conventional banks rather than Islamic banks, the current study aims to bridge the gap in the literature by investigating both types of bank in the Middle East, Southeast Asia, and South Asia. A total of 385 Islamic and conventional banks from 18 countries were selected, with data acquired for the period from 2008 to 2017. Panel data analysis was undertaken using DEA-based MPI to investigate the impact of selected determinants of banks’ productivity, as indicated by TFPCH. The results from both the t-test and nonparametric tests revealed that Islamic banks are more productive than conventional banks, which can be attributed to the increase in efficiency changes. However, no statistically significant difference in productivity exists between the types of bank. The main contribution of this study is that it provides not only corroboration for previous studies but also additional insight into bank productivity in Islamic and conventional banks, which will be important to banks, regulators, investors, and researchers. Conscientia Beam Article PeerReviewed W. Jubilee, Ribed Vianneca and Kamarudin, Fakarudin and Hussain, Hafezali Iqbal and Abdul Latif, Ahmed Razman and Zainal, Nurazilah Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions. International Journal of Management and Sustainability, 9 (3). p. 161. ISSN 2306-9856; ESSN: 2306-0662 https://archive.conscientiabeam.com/index.php/11/article/view/1082
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
description The objective of this study is to examine total factor productivity changes (TFPCH) in Islamic and conventional banks to determine whether they exhibit progression or regression. As earlier studies have focused mainly on productivity in conventional banks rather than Islamic banks, the current study aims to bridge the gap in the literature by investigating both types of bank in the Middle East, Southeast Asia, and South Asia. A total of 385 Islamic and conventional banks from 18 countries were selected, with data acquired for the period from 2008 to 2017. Panel data analysis was undertaken using DEA-based MPI to investigate the impact of selected determinants of banks’ productivity, as indicated by TFPCH. The results from both the t-test and nonparametric tests revealed that Islamic banks are more productive than conventional banks, which can be attributed to the increase in efficiency changes. However, no statistically significant difference in productivity exists between the types of bank. The main contribution of this study is that it provides not only corroboration for previous studies but also additional insight into bank productivity in Islamic and conventional banks, which will be important to banks, regulators, investors, and researchers.
format Article
author W. Jubilee, Ribed Vianneca
Kamarudin, Fakarudin
Hussain, Hafezali Iqbal
Abdul Latif, Ahmed Razman
Zainal, Nurazilah
spellingShingle W. Jubilee, Ribed Vianneca
Kamarudin, Fakarudin
Hussain, Hafezali Iqbal
Abdul Latif, Ahmed Razman
Zainal, Nurazilah
Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions
author_facet W. Jubilee, Ribed Vianneca
Kamarudin, Fakarudin
Hussain, Hafezali Iqbal
Abdul Latif, Ahmed Razman
Zainal, Nurazilah
author_sort W. Jubilee, Ribed Vianneca
title Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions
title_short Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions
title_full Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions
title_fullStr Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions
title_full_unstemmed Analysis of total factor productivity changes in Islamic and conventional banks: empirical evidence from three regions
title_sort analysis of total factor productivity changes in islamic and conventional banks: empirical evidence from three regions
publisher Conscientia Beam
url http://psasir.upm.edu.my/id/eprint/111634/
https://archive.conscientiabeam.com/index.php/11/article/view/1082
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score 13.211869