PRODUCTIVITY AND ITS DETERMINANT OF ISLAMIC BANKS EVIDENCE FROM INDONESIA

Siti Annita Otaviya () and Lina Nugraha Rani ()
Additional contact information
Siti Annita Otaviya: UNIVERSITAS AIRLANGGA
Lina Nugraha Rani: UNIVERSITAS AIRLANGGA

Journal of Islamic Monetary Economics and Finance, 2020, vol. 6, issue 1, 189-212

Abstract: This study aims to determine the level of productivity of Islamic banks in Indonesia during the period 2011-2018 using indicators of Total Factor Productivity Change (TFPCH) or changes in productivity, and to identify potential determinants of TFPCH. In the first stage, the Malmquist Productivity Index (MPI) is employed to analysethe TFPCH of eight Islamic banks operating between 2011 and 2018. In the second stage, panel data regression is applied to assess the potential determinants of TFPCH. The research findings show that Indonesian Islamic banks experience productivity growth, and that the Technical/Technological Change (TECHCH) component has had a significant influence on this growth, with the GDP and BI rate variables being potential determinants of TFPCH. The research contributes to the renewal of interest in studies of Islamic bank productivity performance in Indonesia, and is accompanied by analysis of the specific determinants of the potential of private banks and the macroeconomics of productivity, research on which is still limited in the related literature.

Keywords: Determinant; Islamic banks; Total factor productivity; Malmquist productivity inde (search for similar items in EconPapers)
JEL-codes: D24 G2 G21 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://jimf-bi.org/index.php/JIMF/article/view/1146/800 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:jimfjn:v:6:y:2020:i:1i:p:189-212

DOI: 10.21098/jimf.v6i1.1146

Access Statistics for this article

Journal of Islamic Monetary Economics and Finance is currently edited by Dr. Ali Sakti

More articles in Journal of Islamic Monetary Economics and Finance from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().