The Effect of the 2007 Financial Crisis on the Information Technologies Sector: Application of Malmquist Productivity Index Method

Kenan Oğuzhan Oruç, Fatma Gül Altın

Abstract


The purpose of this paper is to investigate the effect of the 2007 financial crisis on the productivity of information technologies sector by applying Malmquist Productivity Index method. In the research, 20 enterprises operating in the information technologies sector in the list of Fortune 500 and their 6 years data are taken between the periods of 2005-2010. In the method, short and long term liabilities and shareholders’ equity are used as inputs while total income and net profit are used as outputs. As a result, it is observed that productivity of information technologies sector decreased, each year in compare to previous year, respectively in 2007, 2008 and 2009 while it increased in 2005 and 2010. It is additionally observed that in those years when the productivity decreased, component of technical change also decreased while component of efficiency change increased.


Keywords


Global financial crisis, efficiency, Malmquist productivity index.

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References


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DOI: http://dx.doi.org/10.18533/ijbsr.v5i6.782

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