Paper
The Impacts of Main Factors on Dynamic Efficiency of Chinese Commercial Banks
- Authors:
- Fen Liu; Kai Luo
- Abstract
- Based on the panel data from 1998 to 2007 of Chinese 14 major commercial banks, this article estimated the possible impacts of various macro and micro factors on the efficiency of those banks by applying fixed effect, random effect and dynamic panel data model. We find that: (1) GDP growth has at least 3.6% or more significant negative effect on cost efficiency and its decomposition-technical efficiency and allocate efficiency of Chinese commercial banks, while it has a significant positive effect of at least 7% or more on the dynamic Malmquist index and the dynamics of technological progress index. (2) High market concentration and large proportion of state-owned shares are negatively correlated to changes of the sample bank’s static efficiency indicators-cost efficiency and its decompositiontechnical efficiency and allocation efficiency, while positively correlated to technological progress index, decomposed out of output-based dynamic Malmquist index.
- Keywords
- China Bank Efficiency; DEA; SFA; Malmquist Index; Dynamic Panel Data Model
- StartPage
- 6
- EndPage
- 11
- Doi