The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)

Policy-makers around the world have emphasized the virtues of deregulation. The banking industry in Iran has partly experienced reform after the domestic peivate banks entry since 2000. This study investigates the impact of this policy on economic efficiency of banking sector by using banking data o...

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Main Authors: Mehdi Sadeghi, Seyyed Rohollah Ahmadi
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2012-06-01
Series:فصلنامه پژوهش‌های اقتصادی ایران
Subjects:
Online Access:https://ijer.atu.ac.ir/article_2832_16629315341422ef7880f3d3559a44ff.pdf
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author Mehdi Sadeghi
Seyyed Rohollah Ahmadi
author_facet Mehdi Sadeghi
Seyyed Rohollah Ahmadi
author_sort Mehdi Sadeghi
collection DOAJ
description Policy-makers around the world have emphasized the virtues of deregulation. The banking industry in Iran has partly experienced reform after the domestic peivate banks entry since 2000. This study investigates the impact of this policy on economic efficiency of banking sector by using banking data over the period 1997-2006. We measured the economic efficiency of banks using SDEA which necessitated a grasp of technical and allocation efficiency and calculated the model by GAMS software. The purpose of stochastic setting of DEA is accommodating both the inefficiency and the presence of measurement errors. In the second step we used the fixed effect model on panel data to regress efficiency measures on policy variable of entry. We solved the regression model by Eviews and Stata softwares. Our result show that entry variable has not meaningful effect on efficiency. So economic efficiency cannot be differentiated on the basis of policy reform of entry.
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spelling doaj.art-9ff72531da504e81a7768be1f8f5b78f2024-01-02T10:28:58ZfasAllameh Tabataba'i University Pressفصلنامه پژوهش‌های اقتصادی ایران1726-07282476-64452012-06-011751891122832The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)Mehdi Sadeghi0Seyyed Rohollah Ahmadi1Ph.D in Economic, Faculty of Economic, Imam sadiq UniversityM.A in Economic, Imam sadiq UniversityPolicy-makers around the world have emphasized the virtues of deregulation. The banking industry in Iran has partly experienced reform after the domestic peivate banks entry since 2000. This study investigates the impact of this policy on economic efficiency of banking sector by using banking data over the period 1997-2006. We measured the economic efficiency of banks using SDEA which necessitated a grasp of technical and allocation efficiency and calculated the model by GAMS software. The purpose of stochastic setting of DEA is accommodating both the inefficiency and the presence of measurement errors. In the second step we used the fixed effect model on panel data to regress efficiency measures on policy variable of entry. We solved the regression model by Eviews and Stata softwares. Our result show that entry variable has not meaningful effect on efficiency. So economic efficiency cannot be differentiated on the basis of policy reform of entry.https://ijer.atu.ac.ir/article_2832_16629315341422ef7880f3d3559a44ff.pdfbankstochastic data envelopment analysiseconomic efficiencypanel data
spellingShingle Mehdi Sadeghi
Seyyed Rohollah Ahmadi
The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)
فصلنامه پژوهش‌های اقتصادی ایران
bank
stochastic data envelopment analysis
economic efficiency
panel data
title The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)
title_full The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)
title_fullStr The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)
title_full_unstemmed The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)
title_short The Effect of Private Banks on Economic Efficiency of Banking Industry in the Islamic Republic of Iran (Panel Data and SDEA Approach)
title_sort effect of private banks on economic efficiency of banking industry in the islamic republic of iran panel data and sdea approach
topic bank
stochastic data envelopment analysis
economic efficiency
panel data
url https://ijer.atu.ac.ir/article_2832_16629315341422ef7880f3d3559a44ff.pdf
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