BANKS' TOTAL FACTOR PRODUCTIVITY GROWTH IN A DEVELOPING ECONOMY: DOES GLOBALISATION MATTER?
Version of Record online: 21 JAN 2013
Copyright © 2013 John Wiley & Sons, Ltd.
Journal of International Development
Volume 26, Issue 6, pages 821–852, August 2014
How to Cite
2014), BANKS' TOTAL FACTOR PRODUCTIVITY GROWTH IN A DEVELOPING ECONOMY: DOES GLOBALISATION MATTER?, J. Int. Dev., 26; pages 821–852, doi: 10.1002/jid.2897, and (
- Issue online: 6 AUG 2014
- Version of Record online: 21 JAN 2013
- Manuscript Accepted: 29 NOV 2012
- Manuscript Revised: 23 JAN 2012
- Manuscript Received: 28 OCT 2010
- Malmquist Productivity Index;
- panel regression analysis;
The paper provides, for the first time, empirical evidence on the impact of economic globalisation on bank total factor productivity in a developing economy. By employing the Malmquist Productivity Index method, we compute the total factor productivity of the Malaysian banking sector during 1998–2007. Examining different dimensions of economic globalisation, we find evidence supporting for greater trade and capital account restrictions and cultural proximity. On the other hand, personal contacts, information flows, and political globalisation seem to exert significant (negative) influence on banks' total factor productivity levels. Copyright © 2013 John Wiley & Sons, Ltd.