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In this study the pattern of productivity change in Turkish commercial banks is investigated using non-parametric frontier techniques. Employing Malmquist indices, productivity growth is decomposed into technical efficiency change and technological change for a sample of 43 commercial banks over the period 1997-2000. The results indicate that most banks experienced productivity loss due to the negative technological change during the entire period. The results of the productivity change analysis according to banks' ownership structures and scales shows that all the groups experienced similar production changes, which indeed indicates that the banks productivity change is mainly a consequence of the domestic economy's cycles. |
