Since 2001, foreign investors have been permitted to acquire minority ownership stakes m China＇s banks. This paper assesses whether there is any evidence of a cost efficiency payoff m those banks that have taken on f...Since 2001, foreign investors have been permitted to acquire minority ownership stakes m China＇s banks. This paper assesses whether there is any evidence of a cost efficiency payoff m those banks that have taken on foreign investment. Data envelopment analysis isfirst used to generate measures of cost efficiency for China＇s banks over the period 2001-2006. A second stage regression is then performed to determine whether foreign investment has an impact on cost efficiency. The results indicate a positive relationship, although one that is not statistically significant. Policy implications are discussed.展开更多
We analyze the impact of foreign bank presence on foreign direct investment （FDI） in China. The connection between the two couM be particularly relevant for an emerging economy like China because the supply of finan...We analyze the impact of foreign bank presence on foreign direct investment （FDI） in China. The connection between the two couM be particularly relevant for an emerging economy like China because the supply of financial services provided by banks may act as a constraining factor. Foreign bankpresence may then enable and foster FDI and not simply result from it. Our estimates demonstrate that FDI across regions in China is increasing in the existing network of regional branches of foreign banks, which itself is driven （and, therefore, instrumented） by the timing of the regional phasing out of the local limits for foreign banks on local currency business. The effect of foreign bank presence on FDI is particularly strong for some specific sectors （farming, manufacturing, construction, transportation, wholesale/ retail trade and real estate） if those sectors are strongly represented in the source economies.展开更多
文摘Since 2001, foreign investors have been permitted to acquire minority ownership stakes m China＇s banks. This paper assesses whether there is any evidence of a cost efficiency payoff m those banks that have taken on foreign investment. Data envelopment analysis isfirst used to generate measures of cost efficiency for China＇s banks over the period 2001-2006. A second stage regression is then performed to determine whether foreign investment has an impact on cost efficiency. The results indicate a positive relationship, although one that is not statistically significant. Policy implications are discussed.
文摘We analyze the impact of foreign bank presence on foreign direct investment （FDI） in China. The connection between the two couM be particularly relevant for an emerging economy like China because the supply of financial services provided by banks may act as a constraining factor. Foreign bankpresence may then enable and foster FDI and not simply result from it. Our estimates demonstrate that FDI across regions in China is increasing in the existing network of regional branches of foreign banks, which itself is driven （and, therefore, instrumented） by the timing of the regional phasing out of the local limits for foreign banks on local currency business. The effect of foreign bank presence on FDI is particularly strong for some specific sectors （farming, manufacturing, construction, transportation, wholesale/ retail trade and real estate） if those sectors are strongly represented in the source economies.
