Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box?

The paper provides for the first time empirical evidence on the impact of economic globalization on bank efficiency in a developing economy. Using the data envelopment analysis method, we compute the efficiency of the Chinese banking sector during 2000– 2007. The empirical findings suggest that the...

Full description

Bibliographic Details
Main Authors: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: Wiley-Blackwell Publishing Ltd. 2011
Subjects:
Online Access:http://irep.iium.edu.my/5199/
http://irep.iium.edu.my/5199/1/E_2011_5_2011_Fadzlan_Sufian_n.pdf
_version_ 1848776459224612864
author Sufian, Fadzlan
Habibullah, Muzafar Shah
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
building IIUM Repository
collection Online Access
description The paper provides for the first time empirical evidence on the impact of economic globalization on bank efficiency in a developing economy. Using the data envelopment analysis method, we compute the efficiency of the Chinese banking sector during 2000– 2007. The empirical findings suggest that the inefficiency of the Chinese banking sector stems largely from scale rather than pure technical. Examining different components of economic globalization, we find that greater economic integration through higher trade flows, cultural proximity and political globalization have significant and positive influence on bank efficiency levels. The empirical findings suggest that liberalization (restrictions) of the capital account exerts a negative (positive) influence on bank efficiency levels in China.
first_indexed 2025-11-14T14:30:25Z
format Article
id iium-5199
institution International Islamic University Malaysia
institution_category Local University
language English
last_indexed 2025-11-14T14:30:25Z
publishDate 2011
publisher Wiley-Blackwell Publishing Ltd.
recordtype eprints
repository_type Digital Repository
spelling iium-51992013-06-21T08:43:28Z http://irep.iium.edu.my/5199/ Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box? Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking The paper provides for the first time empirical evidence on the impact of economic globalization on bank efficiency in a developing economy. Using the data envelopment analysis method, we compute the efficiency of the Chinese banking sector during 2000– 2007. The empirical findings suggest that the inefficiency of the Chinese banking sector stems largely from scale rather than pure technical. Examining different components of economic globalization, we find that greater economic integration through higher trade flows, cultural proximity and political globalization have significant and positive influence on bank efficiency levels. The empirical findings suggest that liberalization (restrictions) of the capital account exerts a negative (positive) influence on bank efficiency levels in China. Wiley-Blackwell Publishing Ltd. 2011-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5199/1/E_2011_5_2011_Fadzlan_Sufian_n.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2011) Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box? China & World Economy, 19 (5). pp. 1-17. ISSN 1671-2234 http://www.wiley.com/bw/journal.asp?ref=1671-2234 10.1111/j.1749-124X.2011.01260.x
spellingShingle HG1501 Banking
Sufian, Fadzlan
Habibullah, Muzafar Shah
Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box?
title Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box?
title_full Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box?
title_fullStr Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box?
title_full_unstemmed Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box?
title_short Navigating the impact of globalization on bank efficiency in China: panacea or Pandora’s Box?
title_sort navigating the impact of globalization on bank efficiency in china: panacea or pandora’s box?
topic HG1501 Banking
url http://irep.iium.edu.my/5199/
http://irep.iium.edu.my/5199/
http://irep.iium.edu.my/5199/
http://irep.iium.edu.my/5199/1/E_2011_5_2011_Fadzlan_Sufian_n.pdf