Has economic freedom foster bank performance? panel evidence from China

Sufian, Fadzlan and Habibullah, Muzafar Shah (2010) Has economic freedom foster bank performance? panel evidence from China. China Economic Journal, 3 (3). pp. 255-279. ISSN 1753-8963(print); 1753-8971(online)

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Abstract

The impact of economic freedom on the wellbeing of the economy has been widely documented. Noticeably absent in literature is the empirical evidence on the impact of economic freedom on the banking sector. The present paper employs data on the Chinese banking sector and provides for the first time empirical evidence on the impact of economic freedom. We find evidence supporting greater freedom for entrepreneurs to start businesses. Interestingly, the impact of monetary freedom seems to be detrimental on the level of profitability of banks operating in the Chinese banking sector, providing support to the benefits of government interventions.

Item Type:	Article (Journal)
Additional Information:	6678/22167
Uncontrolled Keywords:	banks; economic freedom; profitability; panel regression analysis; China
Subjects:	H Social Sciences > HC Economic History and Conditions > HC92 Economic geography of the oceans (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Mrs. Wan Salwati Wan Salleh
Date Deposited:	18 Dec 2012 13:23
Last Modified:	18 Dec 2012 13:23
URI:	http://irep.iium.edu.my/id/eprint/22167

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