Banking and Finance - Closed

Permanent URI for this collectionhttps://hdl.handle.net/11693/115546

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Browsing Banking and Finance - Closed by Author "Mahmud, S. F."

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    Agro-climatic conditions and regional technical inefficiencies in agriculture
    (Wiley-Blackwell Publishing, Inc., 2002) Demir, N.; Mahmud, S. F.
    A survey of applications of the Technical Inefficiency Effects (TIE) model suggests that agro-climatic and other environment variables are customarily omitted in the model specifications. The justification for such an omission is the assumption that these variables are beyond the control of the farmers and therefore should be treated as random variables. In this paper, we argue that in applications dealing with regional agricultural data, agro-climatic variables should not be treated as pure random terms. Historical differences in agro-climatic conditions are known with a reasonable degree of certainty across a larger region. Therefore, omission of such variables from the analysis may lead to inaccurate interregional technical inefficiency comparisons. In order to demonstrate the importance of agro-climatic variables in such analyses, we estimate the TIE model for Turkey. A translog stochastic frontier production function with agro-climatic variables such as rainfall and land quality is estimated, and it is shown not only that the agro-climatic variables are statistically significant but also that their omission substantially affects mean output elasticities and relative technical efficiencies.
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    The technical inefficiency effects of Turkish banks after financial liberalization
    (Wiley-Blackwell Publishing Ltd., 2005) Demir, N.; Mahmud, S. F.; Babuscu, S.
    The banking sector in Turkey has grown significantly over the last two decades of financial liberalization. One of the aims of the financial liberalization was to improve efficiency through restructuring programs including the privatization of state banks and the encouragement of mergers. In this paper we identify key factors determining the technical efficiency differentials among Turkish commercial banks in the pre-and post-liberalization periods, using the technical inefficiency effects model. We found that loan quality, size, ownership of the banks, and profitability have a positive and significant impact on the technical efficiencies of banks. The results warrant implementation of effective regulatory measures to improve the quality of the earning assets of commercial banks. Furthermore, steps by the government to encourage acquisitions or mergers for private banks and the privatization of state-owned banks seem to be consistent in improving the overall efficiency of commercial banking in Turkey.