X-efficiency versus Rent Seeking in Chinese banks: 1997–2006
نویسندگان
چکیده
This study demarcates cost-inefficiency in Chinese banks into X-inefficiency and rent-seeking-inefficiency. A protected banking market not only encourages weak management and X-inefficiency but also public ownership and state directed lending encourages moral hazard and bureaucratic rent seeking. This paper uses bootstrap non-parametric techniques to estimate measures of X-inefficiency and rent-seeking inefficiency for the 4 state owned banks and 10 joint-stock banks over the period 1997-2006. The paper adjusts for the quality of loans by treating NPLs as a negative output. The paper shows that Chinese banks have reduced cost inefficiency and reduced X-inefficiency at a faster rate than rent-seeking inefficiency.
منابع مشابه
Cardiff Economics Working Papers Bank Efficiency in China, Rent Seeking versus X-inefficiency: a Non-parametric Bootstrapping Approach Cardiff Business School Working Paper Series Bank Efficiency in China, Rent Seeking versus X-inefficiency: a Non-parametric Bootstrapping Approach
This study demarcates costinefficiency in Chinese banks into X-inefficiency and rent-seekinginefficiency. A protected banking market not only encourages weak management and X-inefficiency but also public ownership and state directed lending encourages moral hazard and bureaucratic rent seeking. This paper uses bootstrap non-parametric techniques to estimate measures of X-inefficiency and rent-s...
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