EconPapers    
Economics at your fingertips  
 

Market structure, welfare, and banking reform in China

Chun-Yu Ho ()

Journal of Comparative Economics, 2012, vol. 40, issue 2, 291-313

Abstract: This paper examines the effects of market reform on consumers and state commercial banks in China, a large developing country. I jointly estimate a system of differentiated product demand and pricing equations under alternative market structures. Overall, China’s banking reforms have achieved mixed results. Although there is a welfare gain from more consumers participating in the deposit market, the existing consumers suffer welfare losses because of declined service quality. The welfare effects are unevenly distributed, with losses skewed toward inland provinces and certain consumer groups. There is no clear evidence that the pricing of banking services has become more competitive after the reform, and such pricing remains subject to government intervention. Encouragingly, the price-cost margins of some state commercial banks have fallen over time.

Keywords: Banking reform; Banks in China; Demand estimation; Market structure (search for similar items in EconPapers)
JEL-codes: G21 L11 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0147596711000436
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Market structure, welfare, and banking reform in China (2009) Downloads
Working Paper: Market Structure, Welfare, and Banking Reform in China (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:40:y:2012:i:2:p:291-313

DOI: 10.1016/j.jce.2011.07.006

Access Statistics for this article

Journal of Comparative Economics is currently edited by D. Berkowitz and G. Roland

More articles in Journal of Comparative Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-10-23
Handle: RePEc:eee:jcecon:v:40:y:2012:i:2:p:291-313