The stochastic frontier analysis is a comprehensive and accepted approach for analysing efficiency in case of the parametric functional relationship existing between production processes’ inputs with its output. Usually, in the banking industry, the relationship between the user inputs and outputs are non-deterministic. In the present study, an SFA approach is used to estimate the efficiency of top 17 Asian central banks in combining three inputs and one output. Structural equation modelling is applied to examine the impact of the country’s international trade and economic growth on its central bank efficiency. Based on the results, we have observed significant efficiency ranks between the year 2016– 2018. The technical efficiency value estimates by SFA method range from 0.236822 to 0.821864. Our calculations also suggest a positive impact of international trade on central bank efficiency compared to the economic growth of that country.
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DOI : 10.1051/ro/2021017
Keywords: Stochastic frontier analysis, structural equation modelling, central bank efficiency, international trade, economic growth
@article{RO_2021__55_2_481_0,
author = {Dar, Qaiser Farooq and Young-Hyo, Ahn and Dar, Gulbadin Farooq},
title = {Evaluation and investigation: the determinants of central banking efficiency},
journal = {RAIRO. Operations Research},
pages = {481--493},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
number = {2},
doi = {10.1051/ro/2021017},
mrnumber = {4238791},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2021017/}
}
TY - JOUR AU - Dar, Qaiser Farooq AU - Young-Hyo, Ahn AU - Dar, Gulbadin Farooq TI - Evaluation and investigation: the determinants of central banking efficiency JO - RAIRO. Operations Research PY - 2021 SP - 481 EP - 493 VL - 55 IS - 2 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2021017/ DO - 10.1051/ro/2021017 LA - en ID - RO_2021__55_2_481_0 ER -
%0 Journal Article %A Dar, Qaiser Farooq %A Young-Hyo, Ahn %A Dar, Gulbadin Farooq %T Evaluation and investigation: the determinants of central banking efficiency %J RAIRO. Operations Research %D 2021 %P 481-493 %V 55 %N 2 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2021017/ %R 10.1051/ro/2021017 %G en %F RO_2021__55_2_481_0
Dar, Qaiser Farooq; Young-Hyo, Ahn; Dar, Gulbadin Farooq. Evaluation and investigation: the determinants of central banking efficiency. RAIRO. Operations Research, Tome 55 (2021) no. 2, pp. 481-493. doi: 10.1051/ro/2021017
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