Abstract

This paper investigates the comparative advantage of crude oil in the top 10 oil-producing countries over the period 1990-2016 through computing the Normalized Revealed Comparative Advantage (NRCA) index and further examines the determinants of this advantage using panel estimation technique. The results of the NRCA index showed that not all the top10 oil-producing countries have a comparative advantage in crude oil production during the study period. Countries like Iran, Iraq, Kuwait, Russia, Saudi, and UAE are found to have a comparative advantage in producing crude oil, while countries like Brazil, China, and the USA have no comparative advantage in producing crude oil. For Canada, its comparative advantage is only revealed just between 2006 and 2016. The result of the Panel ARDL suggested that in the long run, crude oil price (COP) and daily average of crude oil production (DAP) are found to be positive and significantly related to NRCA, whereas proven reserve (PR) and domestic demand for oil (DDO) are negative and significantly related to NRCA. In the short run, COP, DAP, and DDO have the same effect as in the long run and significantly related to NRCA, while PR is statistically insignificant. Finally, a bidirectional Granger-causality is detected between the variables except for the PR and NRCA where a unidirectional causality runs from PR to NRCA.

Abstract

This study was conducted to identify the impact of Macroeconomic variables (gross domestic product, inflation), Bank-specific factors and the crisis followed Libyan revolution in 2011 on Libyan banks efficiency. Panel regression analysis was employed with unbalanced data on seven Libyan commercial banks which are listed in the Libyan financial market using data from the period of 2005 to 2013. This study used the Data Envelopment Analysis approach to estimate the technical efficiency as the dependent variable. In addition, Tobit multiple regression which allows limited dependent variables was used to analyze the factors that influence banks efficiency. The results indicate that a significant part of the efficiency of Libyan banks can be attributed to the bank specifies factors (liquid over total assets, loans over total assets). Meanwhile, the study reveals that macroeconomic variable does not have a significant impact on the efficiency of Libyan banks. The results also suggest that the efficiency of Libyan banks is positively affected by the crisis followed the Libyan revolution.

Keywords: Banks Efficiency, Data Envelopment Analysis, Panel Regression Analysis, Libya.

Abstract

This paper is conducted to compare the determinants of profitability of the domestic and foreign Islamic banks operating in Malaysia. The Generalized Least Square (GLS) is employed with unbalanced panel data on seventeen Islamic banks, using quarterly data for the period of 2007 to 2010. In order to find out the differences in the profitability determinants, the sample of banks is divided into two sub-samples (domestic and foreign). The results reveal that domestic Islamic banks are more profitable than foreign Islamic banks. The results also show that the profitability determinants of domestic banks are different from those of foreign banks. The overhead expenses, loans, efficiency, gross domestic product growth rate and bank size have a significant effect in determining banks’ profitability, in which case applicable to the domestic banks only. In turn, the gross domestic product per capita has a significant effect in determining banks’ profitability of only the foreign banks. The study finds that, deposits, capital and reserves, inflation and banks’ age have a significant effect in determining banks’ profitability of both domestic and foreign banks. Meanwhile, liquidity and concentration are not able to explain the variability of domestic and foreign Islamic banks’ profitability. The findings indicate that the profitability of domestic banks is affected by the global financial crisis while, the profitability of foreign banks is not affected.

Abstract

This paper is conducted to identify the determinants of profitability of Islamic banks operating in Malaysia and examine the effect of the global financial crisis on the profitability of these banks. Panel data estimation is employed with unbalanced data on seventeen Islamic banks, using quarterly data for the period of 2007 to 2010. The random effect model was specifically used to achieve the study objectives. The empirical results indicate that overhead expenses ratio, loans ratio, deposits ratio, technical efficiency and bank size have a positive significant effect in determining banks’ profitability. Meanwhile, the inflation rate has a negative significant effect in determining banks’ profitability. The findings of study indicate that capital and reserves, liquidity ratio, banks’ age, gross domestic product growth rate, Gross domestic product per capita and concentration ratio are not able to explain the variability of profitability of Islamic banks. The study also reveals that the profitability of Islamic banks is negatively affected by the global financial crisis. Keywords: Islamic Banks, Bank profitability, Malaysia, global financial crisis, panel data 

ABSTRACT

This paper aims to identify the determinants of efficiency of Islamic banks operating in Malaysia. Panel

regression analysis is employed with unbalanced data on seventeen Islamic banks, using quarterly data for the

period of 2007 to 2010. In addition to that, this study uses the Data Envelopment Analysis (DEA) approach to

estimate the technical efficiency as the dependent variable. Also, Tobit multiple regression which allows limited

dependent variables is used to analyze the factors that influence banks’ efficiency. The empirical results indicate

that bank specifics and financial structure determinants are able to explain a significant part of efficiency of

Islamic banks in Malaysia. The study reveals that domestic and foreign Islamic banks have different efficiency.

The efficiency of Islamic banks is not affected by the global financial crisis.