Efficiency Gains from Removing Trade Barriers: Evidence from Asian Banking Industries

Kai Du

No 2014-04, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: This paper employs two stage data envelopment analysis (DEA) to investigate the efficiency effects of removing trade barriers on banking performance for a sample of Asian developing economies over the period 1997-2006. First, the DEA is employed to estimate the efficiency scores of banks. After that, the estimated DEA scores are analysed by density analysis and regressed on indices of trade barriers (Dinh 2008) that represent how restrictive the national trade policies are in the selected banking industries. The empirical evidence shows that deregulation policies that reduce restrictions on foreign banks have enhanced bank efficiency, while the deregulation of domestic banks has not resulted in significant efficiency gains.

Keywords: Data envelopment analysis; financial deregulation; banking services (search for similar items in EconPapers)
JEL-codes: D21 D24 G21 (search for similar items in EconPapers)
Pages: 39 pages.
Date: 2014-06
New Economics Papers: this item is included in nep-ban, nep-cse, nep-eff, nep-int and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2014-04

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