Productivity Change in the Turkish Banking Industry

Abstract

The objective of this study is to make a detailed analysis of the total factor productivity of the banks operating in the Turkish banking industry from 2003 to 2014. We used the panel data of 42 banks and applied the Malmquist Total Factor Productivity Index method separately for each year. We then calculated the pure efficiency change, scale efficiency change, technical efficiency change, technological change and total factor productivity change indices. We found that between 2003 and 2014, there was a 5.2% increase in the total factor productivity of banks on average, and this increase was the result of a 2.5% increase in technical efficiency change index and a 2.7% increase in the technological change index. © 2015, Mediterranean Center of Social and Educational Research. All rights reserved.