Landscape of Research on the Efficiency Profiles of Islamic Banks using DEA: Survey, Classification and Critical Analysis of the Literature

Abstract

The purpose of this survey paper is to paint the landscape of research on the efficiency profiles of Islamic banks with a focus on Data Envelopment Analysis (DEA) studies. This paper uses a comprehensive systematic literature review to survey 80 relevant papers published between 2004 and 2021. Such landscape is organised around classifications of types of measures of efficiency and their analyses, types of DEA analyses, types of DEA modelling frameworks and models, evaluation approaches and choice of variables for the specification of DEA models, and drivers of efficiency. To the best of our knowledge, no survey on the drivers of efficiency has ever been conducted. In this paper, we overcome this gap in the context of Islamic banking and back up previous findings with relevant theories. In addition, we unify the literature terminologywise. Finally, a critical analysis of the literature is provided along with methodological gaps, inconsistencies, and future research directions.