Efficiency, Technological Change and Total Factor Productivity in Turkish Banking Sector

Authors : Onur Akkaya

Pages : 315-328

View : 21 | Download : 9

Publication Date : 2017-10-31

Article Type : Research

Abstract :Especially, November 2000 and February 2001 crises adversely affected Turkish economy and particularly Turkish banking sector. In the post-crisis period, extensive structural changes have taken place in Turkish banking sector. Interest of foreign banks for Turkish market increased. Some new foreign banks entered into Turkish banking sector through acquisition, while existing foreign banks increased their operations. Foreign banks are expected to bring  new practices and advance technology to the market and enhance competitive pressure in banking (Aysan et al.;2011). In this context, this paper addresses the following questions: How does technology change after the post-crisis period in Turkish banking sector? How affected the technology change in Turkish banking sector? How affected the technical efficiency change and the scale efficiency change in Turkish banking sector? and finally, how affected the total factor productivity change in Turkish banking sector? So, in this paper, I analyse the changes efficiency and technology change in Turkish banking sector in the light of the facts discussed above, and focus on the total factor productivity of Turkish banking sector and the existence of the relationship between efficiency and technology change.
Keywords : Efficiency, Stochastic Frontier Approach, Total Factor Productivity, Turkish Banking Sector