The impact of Islamic banking on the cost efficiency and productivity change of Malaysian commercial banks

This study employs stochastic frontier analysis to analyze Malaysian commercial banks during 1996-2002, and particularly focuses on determining the impact of Islamic banking on performance. We derive both net and gross efficiency estimates, thereby demonstrating that differences in operating characteristics explain much of the difference in costs between Malaysian banks. We also decompose productivity change into efficiency, technical, and scale change using a generalised Malmquist productivity index. On average, Malaysian banks experience moderate scale economies and annual productivity change of 2.68 percent, with the latter driven primarily by technical change, which has declined over time. Our gross efficiency estimates suggest that Islamic banking is associated with higher input requirements. However, our productivity estimates indicate that full-fledged Islamic banks have overcome some of these cost disadvantages with rapid technical change, although this is not the case for conventional banks operating Islamic windows. Merged banks are found to have higher input usage and lower productivity change, suggesting that bank mergers have not contributed positively to bank performance. Finally, our results suggest that while the East Asian financial crisis had a short-term cost-reducing effect in 1998, the crisis triggered a more lasting negative impact by increasing the volume of non-performing loans.

The impact of Islamic banking on the cost efficiency and productivity change of Malaysian commercial banks

This study employs Stochastic Frontier Analysis (SFA) to analyse Malaysian commercial banks during 1996–2002, and particularly focuses on determining the impact of Islamic banking on performance. We derive both net and gross efficiency estimates, thereby demonstrating that differences in operating characteristics explain much of the difference in costs between Malaysian banks. We also decompose productivity change into efficiency, technical, and scale change using a generalized Malmquist productivity index. On average, Malaysian banks experience moderate scale economies and annual productivity change of 2.68%, with the latter driven primarily by Technical Change (TC), which has declined over time. Our gross efficiency estimates suggest that Islamic banking is associated with higher input requirements. However, our productivity estimates indicate that full-fledged Islamic banks have overcome some of these cost disadvantages with rapid TC, although this is not the case for conventional banks operating Islamic windows. Merged banks are found to have higher input usage and lower productivity change, suggesting that bank mergers have not contributed positively to bank performance. Finally, our results suggest that while the East Asian financial crisis had a short-term costreducing effect in 1998, the crisis triggered a long-lasting negative impact by increasing the volume of nonperforming loans.

A Study Of The Textile Industry In Kerala With Comparative Reference To Tamil Nadu

. The cotton mill industry is one of the important medium and large-scale industries in the State of Kerala. Due to the widespread development of the handloom industry in the State, there is an environment conducive to the growth of cotton spinning mills which produce yarn, the raw material required by the handloom industry. New spin— ing mills are being commissioned. But the performance of the existing cotton spinning and weaving mills in the State is not quite satisfactory. Hence an analysis has been carried out into the profitability and financial position of the industry in Kerala. The objective of the study is to make a financial analysis of the industry covering various aspects such as cost structure, productivity, asset structure, financial structure and working capital management.

Macroalgal blooms alter community structure and primary productivity in marine ecosystems

Eutrophication, coupled with loss of herbivory due to habitat degradation and overharvesting, has increased the frequency and severity of macroalgal blooms worldwide. Macroalgal blooms interfere with human activities in coastal areas, and sometimes necessitate costly algal removal programs. They also have many detrimental effects on marine and estuarine ecosystems, including induction of hypoxia, release of toxic hydrogen sulfide into the sediments and atmosphere, and the loss of ecologically and economically important species. However, macroalgal blooms can also increase habitat complexity, provide organisms with food and shelter, and reduce other problems associated with eutrophication. These contrasting effects make their overall ecological impacts unclear. We conducted a systematic review and meta-analysis to estimate the overall effects of macroalgal blooms on several key measures of ecosystem structure and functioning in marine ecosystems. We also evaluated some of the ecological and methodological factors that might explain the highly variable effects observed in different studies. Averaged across all studies, macroalgal blooms had negative effects on the abundance and species richness of marine organisms, but blooms by different algal taxa had different consequences, ranging from strong negative to strong positive effects. Blooms' effects on species richness also depended on the habitat where they occurred, with the strongest negative effects seen in sandy or muddy subtidal habitats and in the rocky intertidal. Invertebrate communities also appeared to be particularly sensitive to blooms, suffering reductions in their abundance, species richness, and diversity. The total net primary productivity, gross primary productivity, and respiration of benthic ecosystems were higher during macroalgal blooms, but blooms had negative effects on the productivity and respiration of other organisms. These results suggest that, in addition to their direct social and economic costs, macroalgal blooms have ecological effects that may alter their capacity to deliver important ecosystem services.

A study of the cost structure of the cashew industry in kerala, karnataka and tamilnadu

Since the world demand for cashew kernels has been rising steadily for several years in the past, conferring significant price increase the processing of cashew remains a highly profitable lndustry. India being the earliest and largest supplier of cashew kernels in the world market it is our prestigious obligations to reestablish her pristine monopoly. Further the added importance ot the indutry in the Socio economic context of the State of Kerala makes various measures impervative in order to bring back to the industry its pristine glory at the late sixties to give a face lift and to stabilize the industry. This present study adopts a comprehensive frame work of analysis compassing the major issues involved in the cultivation, distribution, import, processing and marketing of cashew undcr the private and public sector, migration of the industry and the financial requirements of the industry.

Are Indian Firms too Small? A Nonparametric Analysis of Cost Efficiency and Industry Structure of Indian Manufacturing

In this paper we use the 2004-05 Annual Survey of Industries data to estimate the levels of cost efficiency of Indian manufacturing firms in the various states and also get state level measures of industrial organization (IO) efficiency. The empirical results show the presence of considerable cost inefficiency in a majority of the states. Further, we also find that, on average, Indian firms are too small. Consolidating them to attain the optimal scale would further enhance efficiency and lower average cost.

Simulation of oil productivity and quality of N-S oriented olive hedgerow orchards in response to structure and interception of radiation

Simulations of oil yield and quality are presented for N–S oriented, hedgerow olive orchards of a range of structures (viz. canopy depth, canopy width, canopy slope and row spacing) using responses of yield and quality parameters to solar irradiance on canopy walls measured in a range of orchards, cv. Arbequina, in Spain. Results reveal that orchard yield of hedgerows of rectangular shape reaches a maximum when canopy depth equals alley width (row spacing−canopy width) and decreases at wider spacing, and/or with wider canopies, as the length of productive row decreases per unit area. Maximum yields for 4-m deep canopies were 2885 kg ha−1 at 1-m width and 5-m row spacing, 2400 kg ha−1 at 2-m width and 6-m spacing, and 2050 kg ha−1 at 3-m width and 7-m spacing. Illumination of canopies can be increased by applying slopes to form rhomboidal hedgerows. Substantial yield advantage can be achieved, especially for wide hedgerows, partly by closer row spacing that increases row length per unit area. By comparison, responses to latitude in the range 30–40◦ are small and do not warrant different row spacing. Oil quality parameters also respond to orchard structure. Responses are presented for oleic and palmitic acid, stability, and maturity index. Oleic acid content declines as alley spacing increases and is smaller, shallow than in wide, deep canopies. Palmitic acid content, stability, and maturity index increase with row alley spacing and are greater in narrow, shallow than in wide, deep canopies.

Reliability issues and cost structure in the 13000 SHS rural electrification programme in Morocco

Operalion and mainlenance (O&M) casi 01 solar home syslems (SHS) in pholovollaie rural electrification (PVRE) programmes is a key factor in the economic viability and long lerm suslainability. This paper reports on a 13000 inslalled SHSs programme carried oul in Moroceo. Il is presenled Ihe reliability analysis 01 Ihe SHSs as well as the distribution of real cests of installation, O&M and management to oblain respeclively Ihe reliability lunelions 01 Ihe SHS componenls and lo eharaclerize the overall programme cast structure.

A method for comparing cost and productivity of aerial spray delivery /

Mode of access: Internet.

Cost economies, efficiency and productivity growth in the Chinese banking industry:evidence from a quarterly panel dataset

This article examines cost economies, productivity growth and cost efficiency of the Chinese banks using a unique panel dataset that identifies banks' four outputs and four input prices over the period of 1995-2001. By assessing the appropriateness of model specification, and making use of alternative methodologies in evaluating the performance of banks, we find that the joint-stock commercial banks outperform state-owned commercial banks in productivity growth and cost efficiency. Under the variable cost assumption, Chinese banks display economies of scale, with state-owned commercial banks enjoying cost advantages over the joint-stock commercial banks. Consequently, our results highlight the ownership advantage of these two types of banks and generally support the ongoing banking reform and transformation that is currently taking place in China.