earticle

영어

In this paper, the pattern of productivity change in Korean banking industry is examined by using the empirical data over the period of 1995～2000. In order to measure productivity change in an individual bank between two periods t and t+1, the Malmquist productivity index can be used. Malmquist productivity index is decomposed into two component measures namely, efficiency change and technical change. To compute Malmquist productivity index, data envelopment analysis is used. DEA generates an efficiency score for each bank, relative to a reference technology based on the sample of efficient banks. The number of banks in Korea declined from 26 to 17 during the period of financial restructuring. Total productivity indexes were consistently increased over the period with the exception of 1999.