Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectors

This paper examines whether there has been convergence of total factor productivity levels across twenty-two EU member and three candidate countries following the process of legislative harmonization. The results indicate evidence of β-convergence and σ-convergence in productivity across sampled cou...

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Main Authors: Adnan Kasman, Saadet Kasman, Duygu Ayhan, Erdost Torun
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2013-12-01
Series:Journal of Business Economics and Management
Subjects:
Online Access:https://journals.vgtu.lt/index.php/JBEM/article/view/3760
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author Adnan Kasman
Saadet Kasman
Duygu Ayhan
Erdost Torun
author_facet Adnan Kasman
Saadet Kasman
Duygu Ayhan
Erdost Torun
author_sort Adnan Kasman
collection DOAJ
description This paper examines whether there has been convergence of total factor productivity levels across twenty-two EU member and three candidate countries following the process of legislative harmonization. The results indicate evidence of β-convergence and σ-convergence in productivity across sampled countries. The results further indicate that all sampled banking sectors seem to have experienced a significant productivity growth over the sample period. The productivity growth levels range from 3.1% to 15.6% and 6.8% to 19.5% in the old member and new member states, respectively. The geometric means considering all banking firms in the new member and candidate countries together reveal that banking sectors in these countries were more productive than those of in the old EU member countries. Overall, the evidence indicates that promoting merger and acquisition activities in the banking system (and hence supporting market driven consolidation of smaller banks) and enhancing the presence of foreign banks could increase competition and productivity in these banking systems.
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spelling doaj.art-1728fec793124ec5b0fcfde28015591a2022-12-21T17:16:35ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332013-12-0114110.3846/16111699.2012.701228Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectorsAdnan Kasman0Saadet Kasman1Duygu Ayhan2Erdost Torun3Department of Economics, Faculty of Business, Dokuz Eylul University, 35160 Buca, Izmir, TurkeyDepartment of Economics, Faculty of Business, Dokuz Eylul University, 35160 Buca, Izmir, TurkeyDepartment of International Business and Trade, Faculty of Business, Dokuz Eylul University, 35160 Buca, Izmir, TurkeyDepartment of International Business and Trade, Faculty of Business, Dokuz Eylul University, 35160 Buca, Izmir, TurkeyThis paper examines whether there has been convergence of total factor productivity levels across twenty-two EU member and three candidate countries following the process of legislative harmonization. The results indicate evidence of β-convergence and σ-convergence in productivity across sampled countries. The results further indicate that all sampled banking sectors seem to have experienced a significant productivity growth over the sample period. The productivity growth levels range from 3.1% to 15.6% and 6.8% to 19.5% in the old member and new member states, respectively. The geometric means considering all banking firms in the new member and candidate countries together reveal that banking sectors in these countries were more productive than those of in the old EU member countries. Overall, the evidence indicates that promoting merger and acquisition activities in the banking system (and hence supporting market driven consolidation of smaller banks) and enhancing the presence of foreign banks could increase competition and productivity in these banking systems.https://journals.vgtu.lt/index.php/JBEM/article/view/3760bankingproductivityconvergenceintegrationEU membersMalmquist
spellingShingle Adnan Kasman
Saadet Kasman
Duygu Ayhan
Erdost Torun
Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectors
Journal of Business Economics and Management
banking
productivity
convergence
integration
EU members
Malmquist
title Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectors
title_full Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectors
title_fullStr Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectors
title_full_unstemmed Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectors
title_short Total factor productivity and convergence: evidence from old and new EU member countries’ banking sectors
title_sort total factor productivity and convergence evidence from old and new eu member countries banking sectors
topic banking
productivity
convergence
integration
EU members
Malmquist
url https://journals.vgtu.lt/index.php/JBEM/article/view/3760
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AT duyguayhan totalfactorproductivityandconvergenceevidencefromoldandneweumembercountriesbankingsectors
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