COMPARATIVE TFP GROWTH BETWEEN GCC CONVENTIONAL AND ISLAMIC BANKS BEFORE AND AFTER THE 2008 FINANCIAL CRISIS
Azzeddine Azzam and
Belaid Rettab
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Azzeddine Azzam: Department of Agricultural Economics, University of Nebraska-Lincoln, 103E Filley Hall, Lincoln, Nebraska, USA
The Singapore Economic Review (SER), 2022, vol. 67, issue 01, 289-308
Abstract:
This paper measures and compares the performance of GCC conventional and Islamic banks in terms of total factor productivity growth (TFPG) before and after the 2008 financial crisis. The sources of TFPG are technical change, size economies, and observed asset growth. Technical change and size economies are measured by estimating a translog cost function and factor share equations. Results show that Islamic banks outperformed conventional banks overall and across different sizes. To the extent that product and process innovation improves TFPG, Islamic banks have weathered the 2008 financial crisis by being more innovative than conventional banks.
Keywords: Conventional versus Islamic banking; GCC; total factor productivity growth; 2008 financial crisis (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:wsi:serxxx:v:67:y:2022:i:01:n:s0217590820420047
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DOI: 10.1142/S0217590820420047
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