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

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

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Abstract

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.

Item Type:	Article (Journal)
Additional Information:	6678/5199
Uncontrolled Keywords:	Bank efficiency, Data envelopment analysis, Economic globalization, Panel regression analysis
Subjects:	H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr. Fadzlan Sufian
Date Deposited:	02 Nov 2011 16:58
Last Modified:	21 Jun 2013 16:43
URI:	http://irep.iium.edu.my/id/eprint/5199

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