Document Details

Document Type : Article In Journal 
Document Title :
The Estimation of the Cost Function for Islamic and Traditional Banks: Comparative Study
تقدير دالة تكاليف البنوك الإسلامية والبنوك التجارية:دراسة مقارنة
 
Subject : Articles  
Document Language : Arabic 
Abstract : This research estimates the translog cost function for a sample of Islamic and traditional banks. Economies of scale, economies of scope, elasticity of substitution and own-price elasticity of inputs is also estimated and compared for these banks. The significant result of this research is that Islamic banks cost function reveals economies of scale until assets reach $556 million, while that of traditional banks shows diseconomies of scale. The economies of scale for the Islamic banks provide an advantage to reduce average cost as these banks expand production and operations. This advantage permits Islamic banks to compete with the traditional banks to get a bigger share of the market. As for economies of scope, the Islamic banks Cost function was not characterized by cost complementarity. This implies that each Islamic bank should specialize in one type of contract since each contract requires different mixture of inputs. 
ISSN : 1018-7383 
Journal Name : Islamic Economics Journal 
Volume : 7 
Issue Number : 1 
Publishing Year : 1415 AH
1995 AD 
Number Of Pages : 24 
Article Type : Article 
Added Date : Sunday, October 11, 2009 

Researchers

Researcher Name (Arabic)Researcher Name (English)Researcher TypeDr GradeEmail
عبدالرحيم عبدالحميد الساعاتيABDULRAHEEM A. SAATIResearcher  
محمود حمدان العصيميMAHMOUD H. AL-OSAIMYResearcher  

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