Measuring Efficiency of Vietnamese Commercial Banks: An Application of Data Envelopment Analysis (DEA)
نویسنده
چکیده
In this paper, we focus on the efficiency performance of the Vietnamese commercial banks in terms of their efficiency change, productivity growth, and technological change during the period 2001–2003. We use a data envelopment analysis (DEA) model for this purpose. Productivity is measured using the Malmquist total factor productivity index. The panel data of 13 commercial banks in Vietnam are used for the empirical research. It is found that the average cost efficiency of the sampled banks was about 60.6 percent, and the average annual growth of the Malmquist index was negative 2.2 percent over the study period. Conversely, the total factor productivity (TFP) increased by 5.7 percent in 2003 relative to 2001 (the base year), and the TFP of 2003 was 15.1 percent higher than that of 2002. This TFP improvement was achieved primarily by greater technical efficiency and, to some extent, by technological advancement. These empirical results might benefit Vietnamese policy makers, who are interested in examining the effects of deregulation on productivity of the Vietnamese commercial banks, so as to improve the overall efficiency of the banking industry.
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