Since 2001, foreign investors have been permitted to acquire minority ownership stakes m China＇s banks. This paper assesses whether there is any evidence of a cost efficiency payoff m those banks that have taken on f...Since 2001, foreign investors have been permitted to acquire minority ownership stakes m China＇s banks. This paper assesses whether there is any evidence of a cost efficiency payoff m those banks that have taken on foreign investment. Data envelopment analysis isfirst used to generate measures of cost efficiency for China＇s banks over the period 2001-2006. A second stage regression is then performed to determine whether foreign investment has an impact on cost efficiency. The results indicate a positive relationship, although one that is not statistically significant. Policy implications are discussed.展开更多
Economic theory posits numerous channels through which FDI might create positive spillovers for domestic firms. However, the results of empirical studies that have sought to document these spillovers have been mixed. ...Economic theory posits numerous channels through which FDI might create positive spillovers for domestic firms. However, the results of empirical studies that have sought to document these spillovers have been mixed. One explanation for this variation is that the capacity of domestic firms to absorb spillovers might vary. In the present paper, we explore these issues in the case of China. ,4side from being one of the world＇s leading hosts offoreign direct investment, China makes for an interesting case study because its provinces vary greatly with respect to those factors most commonly held to influence absorptive capacity, such as the initial level of technology in domestic firms. This paper begins by empirically establishing that the spillovers from foreign direct investment do indeed vary across provinces. Threshold values for varioas factors that influence absorptive capacity factors are then estimated and it is found that conditions in many provinces presently fall short of these values. This provides an obvious focus of attention for China＇s policy-makers.展开更多
文摘Since 2001, foreign investors have been permitted to acquire minority ownership stakes m China＇s banks. This paper assesses whether there is any evidence of a cost efficiency payoff m those banks that have taken on foreign investment. Data envelopment analysis isfirst used to generate measures of cost efficiency for China＇s banks over the period 2001-2006. A second stage regression is then performed to determine whether foreign investment has an impact on cost efficiency. The results indicate a positive relationship, although one that is not statistically significant. Policy implications are discussed.
文摘Economic theory posits numerous channels through which FDI might create positive spillovers for domestic firms. However, the results of empirical studies that have sought to document these spillovers have been mixed. One explanation for this variation is that the capacity of domestic firms to absorb spillovers might vary. In the present paper, we explore these issues in the case of China. ,4side from being one of the world＇s leading hosts offoreign direct investment, China makes for an interesting case study because its provinces vary greatly with respect to those factors most commonly held to influence absorptive capacity, such as the initial level of technology in domestic firms. This paper begins by empirically establishing that the spillovers from foreign direct investment do indeed vary across provinces. Threshold values for varioas factors that influence absorptive capacity factors are then estimated and it is found that conditions in many provinces presently fall short of these values. This provides an obvious focus of attention for China＇s policy-makers.
