Efficiency Convergence Properties of Indonesian Banks 1992-2007
AbstractThis paper examines the convergence properties of cost efficiency for Indonesian banks for the period 1992-2007. It employs the Simar and Wilson's (2007) two stage semi-parametric double bootstrap DEA procedure to estimate cost efficiency. Using panel data estimation, the paper examines Ã-convergence and σ-convergence, to test the speed at which Indonesian banks are converging, towards the best practice and country average. We find evidence that in general the post-crisis structural reform process improved the average level of efficiency and improved the distribution of efficiency across banks significantly. The Asian financial crisis and the structural reform had the effect of slowing the adjustment speed of bank efficiency.
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Bibliographic InfoPaper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2011/12.
Length: 28 pages
Date of creation: Apr 2011
Date of revision:
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More information through EDIRC
Banks; Efficiency; Indonesia; Convergence;
Other versions of this item:
- Tiantian Zhang & Kent Matthews, 2012. "Efficiency convergence properties of Indonesian banks 1992--2007," Applied Financial Economics, Taylor and Francis Journals, vol. 22(17), pages 1465-1478, September.
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-07 (All new papers)
- NEP-BAN-2011-05-07 (Banking)
- NEP-CBA-2011-05-07 (Central Banking)
- NEP-CSE-2011-05-07 (Economics of Strategic Management)
- NEP-EFF-2011-05-07 (Efficiency & Productivity)
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- Mihăiță-Cosmin M. POPOVICI, 2013. "A Survey On Bank Efficiency Research With Data Envelopment Analysis And Stochastic Frontier Analysis," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 27, pages 134-142, February.
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