Navigating the impact of globalization on bank efficiency in China

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 i...

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Main Authors: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: Institute of World Economics and Politics, Chinese Academy of Social Sciences 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22793/
http://psasir.upm.edu.my/id/eprint/22793/1/Navigating%20the%20impact%20of%20globalization%20on%20bank%20efficiency%20in%20China.pdf
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author Sufian, Fadzlan
Habibullah, Muzafar Shah
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
building UPM Institutional 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 inefficiencies. 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.
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spelling upm-227932016-02-18T02:38:55Z http://psasir.upm.edu.my/id/eprint/22793/ Navigating the impact of globalization on bank efficiency in China Sufian, Fadzlan Habibullah, Muzafar Shah 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 inefficiencies. 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. Institute of World Economics and Politics, Chinese Academy of Social Sciences 2011-09 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22793/1/Navigating%20the%20impact%20of%20globalization%20on%20bank%20efficiency%20in%20China.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2011) Navigating the impact of globalization on bank efficiency in China. China & World Economy, 19 (5). pp. 85-101. ISSN 1749-124X 10.1111/j.1749-124X.2011.01260.x
spellingShingle Sufian, Fadzlan
Habibullah, Muzafar Shah
Navigating the impact of globalization on bank efficiency in China
title Navigating the impact of globalization on bank efficiency in China
title_full Navigating the impact of globalization on bank efficiency in China
title_fullStr Navigating the impact of globalization on bank efficiency in China
title_full_unstemmed Navigating the impact of globalization on bank efficiency in China
title_short Navigating the impact of globalization on bank efficiency in China
title_sort navigating the impact of globalization on bank efficiency in china
url http://psasir.upm.edu.my/id/eprint/22793/
http://psasir.upm.edu.my/id/eprint/22793/
http://psasir.upm.edu.my/id/eprint/22793/1/Navigating%20the%20impact%20of%20globalization%20on%20bank%20efficiency%20in%20China.pdf