TITLE:
Measuring the X-Efficiency of Saudi Banks: Case Study Pre and Post-Coronavirus Crisis
AUTHORS:
Tazarki Walid, Asaaf Filfilan
KEYWORDS:
Cost Function, X-Efficiency, Economies of Scale, Economies of Scope, Coronavirus Pandemic
JOURNAL NAME:
Theoretical Economics Letters,
Vol.13 No.1,
February
17,
2023
ABSTRACT: By specifying a translog cost function and applying the DFA (Data
Frontier Approach) model, the objective of
this paper was to determine the x-efficiency, economies of scale and
economies of scope for Saudi banks during the period 2017-2022. Subsequently, the
model compares bank efficiency before and after
corona pandemic. The empirical results indicate that the measure of x-inefficiency
(around 7% to 19% of costs) dominates scale inefficiency (around 5% of costs),
moreover, there is no difference in efficiency before and after the coronavirus
pandemic.