Assessing the Effect of Trade Openness on Health in the MENA Region: a Panel Data Analysis

This study examines the effect of trade openness on the health outcomes of 12 countries in the MENA (Middle East and North Africa) region: Algeria, Bahrain, Egypt, Jordan, Morocco, Kuwait, Oman, Qatar, Saudi Arabia, Tunisia, Turkey, and the UAE. By using a panel data investigation over 1970–2015, we check whether the trade of these countries with developed economies (using the proxy of G7 countries) and the rest of the world affects life expectancy and the infant mortality rate. We also assess the moderating effect of governmental corruption. Our findings show two interesting results. First, trade openness has a positive effect on health in the MENA region as it reduces the infant mortality rate and boosts life expectancy for both men and women. Second, better control over corruption and more focus on trade with developed countries would lead to more technology and information spillovers, which positively affect the health sector.     

What Drives Cost Efficiency of Banks in China?

This study uses stochastic frontier analysis to examine the factors that influenced cost efficiency of banks in China from 2005 to 2013. The results indicate that policy variables, such as the reserve requirement ratio, the interest rate spread and open market operations by the People's Bank of China, are effective in improving the cost efficiency of banks, but shadow banking variables may reduce cost efficiency. Among the various bank types, city commercial banks appear to be the most efficient and foreign banks are the least efficient. The present study suggests that policy‐makers can have a positive influence on bank cost efficiency by adjusting macro policy variables on different types of banks and by requiring more information on the shadow banking activities to improve monitoring.     

Bank market concentration and bank efficiency in the European Union: a panel Granger causality approach

The relationships between bank market consolidation and bank efficiency are of particular relevance in the European Union (EU), but they remain controversial. Using a panel Granger causality approach, this paper contributes to the literature, testing not only the causality running from bank market concentration to bank efficiency, but also the reverse causality running from efficiency to concentration. The results obtained confirm the relative complexity of these causality relationships, although they generally point to a negative causation running both from concentration to efficiency and from efficiency to concentration. These findings are in line with the Structure Conduct Performance (SCP) paradigm and the suggestions that the increase of the banks’ market power will contribute to inefficiency, since these banks will face less competition to obtain more output results with less input costs. Our results suggest that within this panel of all 27 EU countries over a relatively long time period, from 1996 to the onset of the 2008 financial crisis, the more cost-efficient commercial and savings banks operated in less concentrated markets.     

Determinants of Technical Efficiency in Chinese Banking: A Double Bootstrap Data Envelopment Analysis Approach

Abstract

The main objective of this study is to measure the technical efficiency level of the Chinese banking industry. It uses a double bootstrap data envelopment analysis approach to compute bias-corrected efficiency scores and investigate the determinants of bank efficiency in China between 2003 and 2010. We observe that Chinese commercial banks regardless of ownership have shown improved efficiency from 2003 to 2010. Our results show a significant difference in the performance between state-owned banks and joint-stock banks over the period analyzed. Moreover, the equity-to-asset ratio also significantly explains variations in inefficiency across Chinese commercial banks. Initial public offering is considered one of the effective ways to improve bank efficiency in China. Overall, the present study provides valuable empirical information that can be used to help guide deliberations regarding future reform policies.     

Bank risk taking,efficiency, and law enforcement: Evidence from Chinese city commercial banks

We investigate bank risk taking, efficiency and their relation to law enforcement using a unique sample of 133 Chinese city commercial banks across 31 regions for the 1999–2008 period. We find that stronger law enforcement tends to promote greater bank risk taking in the region. Furthermore, employing a stochastic distance function approach, our analysis shows that the performance of Chinese city commercial banks, as measured by bank efficiency, is heavily influenced by the effectiveness of law enforcement in the region. Better legal environment, higher efficiency in the legal system, and stronger protection of intellectual property right are associated with a higher level of efficiency among these banks.     

Cost Efficiency Analysis of Local Commercial Banks in Taiwan

This study uses a stochastic frontier analysis (SFA) model to evaluate the relative cost efficiency of commercial banks in Taiwan in the wake of liberalization. The model is estimated using data made available through Taiwan's Banking Bureau and Financial Supervisory Commission. With data from before and after the 2008 financial crisis, our central result is that banks affiliated with bank holding companies (BHC) have become increasingly more efficient. While unaffiliated banks have generally increased their efficiency, they have not kept pace with respect to efficiency gains. Secondary findings are that, independent of ownership structure, both balance sheet and income statement composition affect efficiency. In particular, bank efficiency increases with growth in loans and capital prices. We also find evidence that labor productivity is a key explanatory factor behind efficiency differences across banks. As a result, a policy recommendation is made that banks invest in maximizing worker productivity. Finally, in addition to the insights gained from this study we contribute to the general literature on both bank efficiency and the use of the SFA model by applying it to new data in a new setting.     

Cost X-efficiency in China's banking sector

Employing the stochastic frontier approach, this paper investigates cost X-efficiency in China's banking sector over the period 1985–2002. The objective is to assess whether different ownership types and banking reforms affect X-efficiency. A two-stage regression model is estimated to identify the significant variables influencing X-efficiency. Overall, the results show that banks are operating 40–60% below the X-efficiency frontier. On average, the joint-stock banks are found to be more X-efficient than the state-owned commercial banks, but individual scores present a far more complex picture. It appears that X-efficiency was higher during the first phase of bank reform. Recent policies aimed at increased privatisation, greater foreign bank participation, and liberalised interest rates should help to improve the cost X-efficiency of China's banks.     

The evaluation of East Asian banks by considering economic and political conditions as well as country risk

This paper evaluates the performance of East Asian banks during the period of 2000–2010 by controlling country-specific conditions comprehensively. Particularly, it seeks to show that country-specific conditions are significant factors in estimating the common frontier by which the performance of all banks are compared. Thus, disregarding political conditions, regulatory environments, and country risk would lead to inaccurate efficiency scores because of the inaccurate common frontier. Following this further, an inaccurate measure of bank performance can hardly reveal bank problems before turning into a crisis. Our results confirm the significant impact of country-specific conditions on the common frontier, and hence bank efficiencies. The findings suggest that researchers, bank managers, and regulators also consider other factors other than economic conditions in their evaluations and decisions.     

Farm technology and technical efficiency: Evidence from four regions in China

In this paper we fit stochastic frontier production functions to data of Chinese farms grouped into each of four regions—North, Northeast, East, and Southwest—over 1995–1999. These frontier production functions are shown to have statistically different structures, and the elasticities provide some evidence of diminished marginal products of chemical inputs in the East and capital services in the North and Southwest. Labor has a low elasticity except in the North. Standardized technical efficiency scores are estimated for the farms and are shown to have the same structure across regions and to be related to the age of the household head, land fragmentation, and the village migration ratio, controlling for year effects and village or regional fixed effects.     

中国银行业的市场结构与银行绩效关系研究——基于33家商业银行面板数据的实证检验

以33家商业银行1997—2004年的数据为研究对象，以赫芬达尔指数作为衡量市场结构指标，本文对中国银行业市场结构与银行绩效关系进行了研究。研究结果表明，市场集中度降低对四大国有商业银行盈利能力没有产生显著性影响，但削弱了其他股份制商业银行和城市商业银行的盈利能力。市场集中度与所有银行净利息边际存在显著的负相关关系，不能跨地域经营的城市商业银行净利息边际显著低于其他商业银行。因此应该适度放开城市商业银行经营的地城限制。并防止过度竞争。     

A Bayesian Efficiency Analysis of Angolan Banks

This article studied the technical efficiency of Angolan banks from 2005 to 2012 using a Bayesian stochastic frontier model. The intermediation approach to banking was adopted. The results revealed that Angolan banks were very efficient and that efficiency varies little among the banks analysed. Furthermore, the differences in efficiency between foreign banks, public banks, large‐sized banks and banks that belong to a local conglomerate were examined. It was concluded that the greatest efficiency was to be found in the case of foreign banks. Since size and conglomerate membership do not seem to lead to greater bank efficiency, it was proposed that Angolan policymakers should promote competition in the banking sector.     

经济发展与国有商业银行利润效率

体制改革中国有商业银行盈利能力备受瞩目,以往认为盈利能力差的国有商业银行在世界金融危机期间成为世界最赚钱的银行。本文从不完全竞争厂商利润最大化角度设定随机前沿法利润效率分析模型,以财务盈利能力指标ROAA作为第三方检验标准,分析了1996至2010年我国商业银行利润效率与经济发展指标之间的联系。结果表明:国有商业银行利润效率历经高速增长2003年开始高于其他股份制商业银行;国有商业银行利润效率与GDP增长率和固定资产投资增长率强相关,与消费增长率弱相关;而股份制商业银行利润效率与宏观经济指标相关度弱。由此推断,后危机时代经济增长速度减缓将对国有商业银行利润效率形成较强冲击,而对股份制商业银行影响小,同时消费领域可能成为未来国有商业银行新的利润增长点。     

资管新规下理财子公司对商业银行经营稳定性的影响

资管新规的出台拉开了资产管理领域改革的序幕,其中商业银行理财业务受到强烈冲击,理财子公司应运而生。由于商业银行与其对应的理财子公司之间联系紧密,因此银行理财业务转型可能会带来潜在风险。研究覆盖2017年第二季度至2022年第二季度的银行理财市场,借助Z指标对资管新规背景下银行理财业务转型程度对商业银行经营稳定性影响展开实证研究,发现两者存在负相关关系。由此,对中国资管行业和银行理财市场展开积极展望并提出建议。     

城商行技术效率差异(2007-2012)：来自苏鲁浙区域样本的分析

浙江、江苏、山东三地经济金融发达、市场化程度高,剖析其城商行技术效率差异及其影响因素对于国内城商行技术效率差异研究具有重要的参考价值。文章以三地19家城商行2007-2012年的面板数据作为样本,通过随机前沿生产函数(SFA)估算近六年的技术效率及变化趋势,并研究影响其技术效率差异的非效率因素。研究发现,三地城商行六年来技术效率逐年提升,且浙江、山东五家城商行六年平均技术效率值位居前列,并表现出较为稳定的技术效率状态;法人治理结构是影响样本城商行技术效率差异的重要因素,适度分散化的股权结构及战略投资者持股与样本城商行的技术效率显著正相关。     

Allocative Efficiency of Agrifood Traders: Shrimp Traders in Indonesia

Shrimp is one of Indonesia's most important agricultural export commodities, with an annual export value exceeding $1 billion. If this high-value sector is to remain competitive and continue to grow, rural traders must be able to efficiently allocate scarce labour and factor inputs to trade shrimp. This study tests for factors leading to allocative inefficiency in the shrimp trade, by estimating a stochastic cost frontier on the basis of data from a survey of 200 shrimp traders in Central Java and South Sulawesi. Our results show that larger firms have a distinct cost advantage in trade and, owing in part to greater access to factor markets, are more efficient in allocating factors. Small firms can improve their allocative efficiency and become more competitive by specialising in trading one shrimp variety and by using output contracts to mitigate risk in the output market.     

GOVERNANCE INSTITUTIONS AND PRIVATE INVESTMENT: AN APPLICATION TO THE MIDDLE EAST AND NORTH AFRICA

This paper addresses the issue of the low level of private investment in the Middle East and North Africa (MENA) region, with special emphasis on the role of governance. Based on the existing published reports, we categorize what types of governance institutions are more detrimental to entrepreneurial investments. We then estimate a simultaneous model of private investment and governance quality where economic policies concurrently explain both variables. Our empirical results show that governance plays a significant role in private investment decisions. This result is particularly true in the case of “administrative quality” in the form of control of corruption, bureaucratic quality, investment‐friendly profile of administration, law and order, as well as for “political stability.” Evidence in favor of “public accountability” is also found. Our estimations also stress that structural reforms like financial development, trade openness, and human development affect private‐investment decisions directly, and/or through their positive effect on governance.     

Efficiency and Risk in Commercial Banks – Hybrid DEA Estimation

Abstract

The hybrid DEA model can solve the difference between radial inputs and non-radial inputs and evaluate efficiency. This is a pioneering study that uses the hybrid DEA model, evaluating the proportionate inputs with a radial measure and the non-proportionate inputs with a non-radial measure, in order to examine the impact of non-performing loans (NPLs) on the efficiency of Taiwan's banking sector from 2006 to 2010. In summary, this research demonstrates the following: (1) Only nine banks remained in the top efficiency list during these years: China Development Industrial Bank, Mega International Commercial Bank, Chinatrust Commercial Bank, Cathay United Bank, Bank of Kaohsiung, Industrial Bank of Taiwan, Taiwan Cooperative Bank, Land Bank, and Bank of Taiwan. (2) Risk is an important factor that should be taken into consideration when evaluating banking efficiency. (3) From the hybrid DEA model, we find that most of the inefficient banks have an inefficiency factor caused primarily by too many NPLs (risk). (4) The efficiency of Taiwan's large-scale banks is significantly better than the small-scale bank. By looking at the inefficiency index, the large-scale bank's inefficiency is caused by NPLs. For the small-scale bank, both radial variables and non-radial variables have equal importance in improving its efficiency.     

基于DEA-Tobit二阶段法的城市商业银行效率评价——以中部六省9家城市商业银行为例

针对我国城市商业银行效率评价方法单一且区域化研究较少的问题,利用数据包络分析超效率模型对中部六省城市商业银行经营效率进行了评价,对其结果进行了进一步的投影分析,并在此基础上,运用Tobit模型分析了银行效率的影响因素。实证结果表明,人均营业费用和存贷比与银行经营效率成负相关,资本充足率与银行经营效率成正相关。     

DETERMINANTS OF SOUTH AFRICA‐US INTRA‐INDUSTRY TRADE IN SERVICES: A WILD BOOTSTRAP DYNAMIC PANEL DATA ANALYSIS1

The study attempts to empirically identify factors that determine South Africa–US intra‐industry trade (IIT) in selected services during the period 1994‐2002. The study utilises Liu‐Davidson‐Flachaire wild bootstrap, which is robust to heteroscedasticity and provides estimates of the degree of parameter bias. The empirical results, in principle, show that South Africa–US IIT in the selected services is determined by factors similar to goods‐based “North‐South” IIT studies. Specifically, differences in per capita income and differences in market size negatively affect IIT. The study also indicates that US foreign direct investment in South Africa positively contributes to the unaffiliated IIT in services.     

Financial Sector Reforms,Bank Performance and Economic Growth: Evidence from Zambia

Abstract: This paper investigates the effects of market‐based financial sector reforms on the competitiveness and efficiency of commercial banks, and economic growth, in Zambia. The results show that reforms adopted in Phase II (strengthening of regulatory and supervisory, payments and settlements, and financial operations frameworks) and Phase III (implementation of a comprehensive financial sector development plan) had significant positive effects on bank cost efficiency. Macroeconomic variables such as per capita GDP and inflation were insignificant. Further, using an endogenous growth model in which industrial production is a proxy for GDP growth, it was found that bank cost efficiency, financial depth, Phase II and III financial sector reforms, the degree of economic openness, and rate of inflation were significant determinants of economic growth. Phase II policies and the inflation rate have negative effects while the rest of the variables have positive effects on economic growth. Some plausible policy lessons are offered.