Evaluation and investigation: the determinants of central banking efficiency

Abstract

The stochastic frontier analysis is a comprehensive and accepted approach for analysing efficiency in case of the parametric functional relationship existing between production processes’ inputs with its output. Usually, in the banking industry, the relationship between the user inputs and outputs are non-deterministic. In the present study, an SFA approach is used to estimate the efficiency of top 17 Asian central banks in combining three inputs and one output. Structural equation modelling is applied to examine the impact of the country’s international trade and economic growth on its central bank efficiency. Based on the results, we have observed significant efficiency ranks between the year 2016-18. The technical efficiency value estimates by SFA method range from 0.236822 to 0.821864. Our calculations also suggest a positive impact of international trade on central bank efficiency compared to the economic growth of that country.

Regional differences and threshold effects of labor transfer affecting the technical efficiency of China’s agricultural industry: A case study of the apple industry

“…Referring to Guo Yajun et al [ 38 ], we used SFA to analyze the changing trend of technical efficiency in China’s apple industry. Focusing on the selection of the production function in the model, the following SFA model was established by referring to the literature [ 39 , 40 ]: …”