The Productivity of The Banking Industry in Twaiwan and China : An Application of CCD and DEA

• Main Authors: Vincent Chen, 陳俊展
• Other Authors: 李建興
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/22077523615104126524

碩士 === 義守大學 === 管理科學研究所 === 92 === The study used the productivity equation designed by Caves, Christensen and Diewert (1982), and McGukin and Nguyen (1995) to analyze the total factor productivity and the total factor profit productivity of the banks across the Straits from 1994 to 2002. The research finds out that the total factor profit productivity of credit departments of Farmers'' and Fishermen''s Association and credit cooperatives has been depressing. On the other hand, that of the branches of foreign banks in Taiwan is growing steadily, which shows that their productivity is relatively stronger than local banks. In particular, their competitive advantages are getting evident, and our financial institutions should learn from them in terms of management. In Mainland China, the total factor profit productivity of three major state policy-related banks dropped dramatically from 1996 to 1998 whereas the productivity of four major state-funded banks and commercial shareholding banks is increasing every year. The study’s results correspond with the condition of the eight major public’s offering banks’ stock prices and earning per share (EPS) in the past few years, which are decreasing gradually. This result matches with the gradually reduced productivity of domestic banks estimated by profit function adopted by this study. The study finds out that it is more accurate to use profit function to estimate the productivity of Taiwan’s financial institutions.