Scale and Technical Efficiency of Development Finance Institutions in Malaysia

Authors

  • Ong Hway Boon Faculty of Management Multimedia University, Malaysia
  • Zarehan Selamat Faculty of Management Multimedia University, Malaysia
  • Norhazlin Ismail Faculty of Management Multimedia University, Malaysia
  • Muzafar Shah Habibullah Faculty of Economics and Management Universiti Putra Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijms2005.12.2.1

Keywords:

Technical and scale efficiency, development financial institutions, non-parametric approach

Abstract

This study focuses on the performance of credit guarantee corporations and development financial institutions that promotes industrialisation, agricultural investment, and growth in small and medium enterprises in Malaysia. A non-parametric technique is used in this analysis to determine the scale and technical efficiency of development financial institutions since the performance of these institutions is directly reflected in the development and economic growth of the sector they promote. The empirical findings we obtained suggested that all development financial institutions are operating satisfactorily in extending their services to small and medium local enterprises.

 

Downloads

Download data is not yet available.

References

Al-Shammari, M. (1999). A multi-criteria data envelopment analysis model for measuring the productive efficiency of hospitals. International Journal of Operations and Production Management, 29(9), 879-890.

Angelini, P., Di Salvo, R., & Ferri, G. (1998). Availability and cost of credit for small businesses customer relationship and credit co-operatives. Journal of Banking and Finance, 22, 925-954.

Camino, D. & Cardone, C. (1999). The valuation and cost of credit insurance schemes for SMEs : the role of the loan guarantee associations. International Small Business Journal, 17(4), 13-31.

Chang, C. C. & Hsieh, T. C. (1998). The economic efficiency of the Credit Department of Farmers’ Associations in Taiwan. Applied Financial Economics, 8, 409-418.

Charnes, A., Cooper, W. W., Lewin, A. Y., & Seiford, L. M. (1994). Data envelopment analysis : Theory, methodology and application. London: Kluwer Academic Publishers.

Chen, C. H. & Yeh, T. L. (1997), A study of efficiency evaluation in Taiwan’s banks. International Journal of Service Industry Management, 9(5), 402-415.

Cummins, J. D., Tennyson, S., & Weiss, M. A. (1999). Consolidation and efficiency in the US life insurance industry. Journal of Banking and Finance, 23, 325-357.

Elyasiani, E. & Mehdian, S. (1993). Measuring technical and scale inefficiencies in the beer industry : non-parametric and parametric evidence. The Quarterly Review of Economics and Finance, 33(4), 383-408.

Fukuyama, H. (1993). Technical and scale efficiency of Japanese commercial banks : A non-parametric approach. Applied Economics, 25, 1101-1112.

Fukuyama, H., Guerra, R., & Weber, W. L. (1999). Efficiency and ownership: Evidence from Japanese Credit Cooperatives. Journal of Economics and Business, 51, 473-487. 16 IJMS 12 (2), 1-17 (2005)

Grabowski, R., Rangan, N., & Rezvanian, R. (1994). The effect of deregulation on the efficiency of U.S. banking firms. Journal of www.ijms.uum.edu.my Economics and Business, 46, 39-54.

Jorge-Moreno, J. & Garcia-Cebrian, L. I. (1999). Measuring of production efficiency in the European railways. European Business Review, 99(5), 332-344.

Miller, S. M. & Noulas, A. G. (1996). The technical efficiency of large bank production. Journal of Banking and Finance, 20, 495-509.

Ong, H. B., Habibullah, M. S., Radam, A., & Azali, M. (2003). Evaluating a credit guarantee agency in a developing economy : a non-parametric approach. International Journal of Social Economics, 30(1), 143 -152.

Soteriou, A. C. & Stavrinides, Y. (1997). An internal customer service quality data envelopment analysis model for bank branches. International Journal of Operations and Production Management, 17(8), 780-789.

Soteriou, A. C., Karahanna, E., Papanastasiou, C., & Diakourakis, M. S. (1998). Using DEA to evaluate the efficiency of secondary schools: the case of Cyprus. International Journal of Educational Management, 12(2), 65-73. IJMS 12 (2), 1-17 (2005) 17 www.ijms.uum.edu.my

Downloads

Published

01-12-2005

Research impact

Harvested 2026-09-08
0 citations recorded so far

Counts differ between services because each indexes a different body of literature. None of them is the whole picture.

Identifiers DOI 10.32890/ijms2005.12.2.1 OpenAlex W7015131516

Most read articles by the same author(s)