Abstract
This paper will evaluate productivity change in Portuguese banking using the Malmquist productivity index. The results show that between 1990 and 1997, banks in Portugal witnessed increased productivity and strong technological progress. Both small and large banks experienced higher productivity and technological change scores, while mid-sized institutions are putting more effort into catching-up policies. Rural banks have experienced strong productivity growth and are catching up with the best practices but lower levels of technological change. Urban banks show higher productivity growth and technological change levels. Government-owned banks have experienced lower levels of productivity change. Finally, the asset per employee ratio shows a positive correlation with the productivity scores, suggesting that this simple index is a good proxy for productivity.
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The authors acknowledge financial support from Junta Nacional de Investigação Científica e Tecnologica, grant number PCSH/ECO/938/95. The authors also thank the participants at the Forty-Seventh International Atlantic Economic Conference in Vienna, Austria, March 16–23, 1999, and an anonymous referee for helpful comments. The authors are responsible for any remaining errors.
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Rebelo, J., Mendes, V. Malmquist indices of productivity change in Portuguese banking: The deregulation period. International Advances in Economic Research 6, 531–543 (2000). https://doi.org/10.1007/BF02294970
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DOI: https://doi.org/10.1007/BF02294970