Efficiency and Competitiveness of the Banking Industry of Bangladesh : Application of Non-Parametric and Non-Structural Approach

Banking Sector's efficiency with productivity and competitiveness is a primal concern for economic development of Bangladesh, like many other countries. This book analyzes the efficiency with productivity change and the degree of competition with market power among the banks of Bangladesh during the period of 2000-2009. A non-parametric data driven technique, Data Envelopment Analysis (DEA) has been used to estimates the overall, pure technical and scale efficiencies for commercial banks of Bangladesh. To observe the productivity growth, Malmquist Total Factor Productivity (TFP) indices has been calculated. Using a panel data framework, non-structural Panzar-Rosse (1977) model empirically estimates the competitiveness of the banking market of Bangladesh. Further extension of the analysis of the market structure of the banking industry of Bangladesh using a Conjectural Variation (CV) approach helps to investigate market power exercised by different categories of banks in Bangladesh. This book may help students who have the intention to study efficiency of different Decision Making Units (DMUs) and competitiveness among different segment of industries.