The impact of foreign bank entry in emerging markets: knowledge spillovers or competitive pressure?

Minyan Zhu

No 2012-04, Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK.

Abstract: This study examines whether there are managerial knowledge spillovers from foreign to domestic banks in Eastern Europe and Latin America, additional to competition effects. I estimate the ’pure’ managerial efficiency teasing out external (environmental) effects in a 3-stage Data Envelopment Analysis (DEA) framework. I then examine the evolutionary pattern of foreign and domestic banks’ managerial performance together with that of banking competition. The main results suggest that domestic banks’ managerial performance is positively associated with foreign bank presence. Even during the period when competition is relatively low, domestic banks are catching up with foreign banks. These results suggest the strong possibility of knowledge spillovers in addition to competition effects and call for future direct evidence.

Keywords: Banking DEA; Managerial Efficiency; Competition; Knowledge Spillover (search for similar items in EconPapers)
JEL-codes: C24 F36 G21 P30 (search for similar items in EconPapers)
Date: 2012-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ueaeco.github.io/working-papers/papers/ccp/CCP-12-04.pdf main text (application/pdf)

Related works:
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:uea:ueaccp:2012_04

Ordering information: This working paper can be ordered from
Juliette Hardman, Center for Competition Policy, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK

Access Statistics for this paper

More papers in Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) from Centre for Competition Policy, University of East Anglia, Norwich, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Juliette Hardmad ().