Productivity and efficiency measurement techniques: Identifying the efficacy of techniques for financial Institutions in developing countries

Abstract

The concepts of efficiency have received a great deal of attention in many organisations. Many different approaches have been applied by many researchers to the measurement of efficiency changes in various types of institutions. The aim of this paper is to review the literature dealing with the concepts of efficiency and to review various techniques used in the measurement of these constructs. Measurement techniques are reviewed and directions are given for future research in data envelopment approach (DEA). Many researchers have used the DEA technique in efficiency analysis of financial institutions. These studies provide evidence that DEA is an appropriate methodology for efficiency analysis for these institutions.