| By: |
Matthews, Kent (Cardiff Business School);
Guo, Jianguang;
Zhang, Nina |
| Abstract: |
This study examines the productivity growth of the nationwide banks of China
over the ten years to 2006. Using a bootstrap method for the Malmquist index
estimates of productivity growth are constructed with appropriate confidence
intervals. The paper adjusts for the quality of the output by accounting for
the non-performing loans on the balance sheets and test for the robustness of
the results by examining alternative sets of outputs. The productivity growth
of the state-owned banks is compared with the Joint-stock banks and it
determinants evaluated. The paper finds that average productivity of the
Chinese banks improved modestly over this period. Adjusting for the quality of
loans, by treating NPLs as an undesirable output, the average productivity
growth of the state-owned banks was zero or negative while productivity of the
Joint-Stock banks was markedly higher. |
| Keywords: |
Bank Efficiency; Productivity; Malmquist index; Bootstrapping |
| JEL: |
D24 G21 |
| Date: |
2007–11 |
| URL: |
http://d.repec.org/n?u=RePEc:cdf:wpaper:2008/17&r=tra |