|
|||||
|
|
What is the net effect of financial liberalization on bank productivity? A decomposition analysis of bank total factor productivity growth |
|
| Institution: | 1. School of Economics, Finance and Accounting, Faculty of Business and Law, Coventry University, Priory Street, Coventry CV1 5FB, UK;2. Centre for Business in Society (CBiS), Faculty of Business and Law, Coventry University, Gosford Street, Coventry CV1 5DL, UK;1. Economics Department, Lancaster University Management School, LA1 4YX, United Kingdom;2. Isenberg School of Management, University of Massachusetts-Amherst, 90 Campus Center Way, 209A Flint Lab, Amherst, MA 01003, United States;3. The University of Kent, Kent Business School, Canterbury, Kent, United Kingdom;1. China Academy of Financial Research, Zhejiang University of Finance and Economics, China;2. Department of Economics, Soochow University, Taiwan |
| Abstract: | We employ a unique framework to quantify the net effect of financial liberalization on banks’ total factor productivity (TFP) growth through a decomposition analysis of two effects: a positive direct effect of financial liberalization on bank TFP growth; and a negative indirect effect operating through a higher propensity to systemic banking crisis. The empirical decomposition is based on a sample of 1530 banks operating in 88 countries over the period 1999–2011. We find that the net effect of financial liberalization on bank TFP growth is positive: the direct positive effect outweighs the negative one. An important policy implication flows from these findings. |
| Keywords: | Financial liberalization Banking crisis Systemic risk Bank productivity Total factor productivity |
| 本文献已被 ScienceDirect 等数据库收录！ | |