A case of the tortoise versus the hare? Deregulation process, timing, and firm performance in emerging markets
The objective of this paper is to examine the relationships between the pace of insurance industry deregulation, the time since the process of deregulation began, and insurance firm performance in emerging markets. Also examined are performance differences between foreign and local insurers. These relationships are examined across different country and regional contexts using a time-series cross-section data set including 383 companies in 31 emerging market countries between the years 1998 and 2003. Results of the analysis suggest that regional differences in the pace of deregulation are significantly related to firm performance. Specifically, firms located in countries that took a rapid approach to insurance deregulation had significantly lower performance than firms in countries where the process was slower and more deliberate. Further, the longer the time since insurance sector deregulation began, the lower the financial performance for all firms. Foreign firms did not have significantly higher performance than local insurers indicating that, at least in this sample and time period, foreign firms do not seem to have a competitive advantage over local firms post-deregulation.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 17 (2008)
Issue (Month): 1 (February)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/133/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Perotti, Enrico C, 1995. "Credible Privatization," American Economic Review, American Economic Association, vol. 85(4), pages 847-59, September.
- Robert M. Stern, 2000. "Quantifying Barriers to Trade in Services," Working Papers 470, Research Seminar in International Economics, University of Michigan.
- Alan M Rugman & Alain Verbeke, 2004.
"A perspective on regional and global strategies of multinational enterprises,"
Journal of International Business Studies,
Palgrave Macmillan, vol. 35(1), pages 3-18, January.
- Alan M. Rugman & Alain Verbeke, 2004. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Working Papers 2004-19, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- David C. Wheelock & Paul W. Wilson, 1996.
"Technical progress, inefficiency and productivity change in U.S. banking, 1984-1993,"
1994-021, Federal Reserve Bank of St. Louis.
- Wheelock, David C & Wilson, Paul W, 1999. "Technical Progress, Inefficiency, and Productivity Change in U.S. Banking, 1984-1993," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(2), pages 212-34, May.
- Wallsten, Scott J, 2001. "An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa and Latin America," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 1-19, March.
- Will Mitchell & J Myles Shaver & Bernard Yeung, 1993. "Performance Following Changes of International Presence in Domestic and Transition Industries," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 647-669, December.
- Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-94, September.
- Oetzel, Jennifer, 2005. "Smaller may be beautiful but is it more risky? Assessing and managing political and economic risk in Costa Rica," International Business Review, Elsevier, vol. 14(6), pages 765-790, December.
- Born, Patricia H, 2001. "Insurer Profitability in Different Regulatory and Legal Environments," Journal of Regulatory Economics, Springer, vol. 19(3), pages 211-37, July.
- Jiatao Li & Stephen Guisinger, 1991. "Comparative Business Failures of Foreign-Controlled Firms in the United States," Journal of International Business Studies, Palgrave Macmillan, vol. 22(2), pages 209-224, June.
- Bernard Hoekman & Carlos Braga, 1997.
"Protection and Trade in Services: A Survey,"
Open Economies Review,
Springer, vol. 8(3), pages 285-308, July.
- Hoekman, Bernard & Primo Braga, Carlos, 1997. "Protection and Trade in Services: A Survey," CEPR Discussion Papers 1705, C.E.P.R. Discussion Papers.
- Hoekman, Bernard & Primo Braga, Carlos A., 1997. "Protection and trade in services : a survey," Policy Research Working Paper Series 1747, The World Bank.
- John Whalley, 2004.
"Assessing the Benefits to Developing Countries of Liberalisation in Services Trade,"
The World Economy,
Wiley Blackwell, vol. 27(8), pages 1223-1253, 08.
- John Whalley, 2003. "Assessing the Benefits to Developing Countries of Liberalization in Services Trade," NBER Working Papers 10181, National Bureau of Economic Research, Inc.
- Geske Dijkstra, A., 2000. "Trade Liberalization and Industrial Development in Latin America," World Development, Elsevier, vol. 28(9), pages 1567-1582, September.
- Edwards, Sebastian, 1997. "Trade Liberalization Reforms and the World Bank," American Economic Review, American Economic Association, vol. 87(2), pages 43-48, May.
- Winston, Clifford, 1993. "Economic Deregulation: Days of Reckoning for Microeconomists," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1263-89, September.
- Geoffrey J. Bannister, 2001. "International Trade and Poverty Alleviation," IMF Working Papers 01/54, International Monetary Fund.
- J J Boddewyn & Marsha Baldwin Halbrich & A C Perry, 1986. "Service Multinationals: Conceptualization, Measurement and Theory," Journal of International Business Studies, Palgrave Macmillan, vol. 17(3), pages 41-57, September.
- Ali Ataullah & Hang Le, 2004. "Financial repression and liability of foreignness in developing countries," Applied Economics Letters, Taylor & Francis Journals, vol. 11(9), pages 545-549.
- Mukherjee, Kankana & Ray, Subhash C. & Miller, Stephen M., 2001. "Productivity growth in large US commercial banks: The initial post-deregulation experience," Journal of Banking & Finance, Elsevier, vol. 25(5), pages 913-939, May.
- J. Myles Shaver, 1998. "Accounting for Endogeneity When Assessing Strategy Performance: Does Entry Mode Choice Affect FDI Survival?," Management Science, INFORMS, vol. 44(4), pages 571-585, April.
- Devereux, Michael B, 1997.
"Growth, Specialization, and Trade Liberalization,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(3), pages 565-85, August.
- Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
- Louis T Wells, 1998. "Multinationals and the Developing Countries," Journal of International Business Studies, Palgrave Macmillan, vol. 29(1), pages 101-114, March.
- Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan, vol. 35(2), pages 81-98, March.
- Aaditya Mattoo, 2003. "China's Accession to the WTO: The Services Dimension," Journal of International Economic Law, Oxford University Press, vol. 6(2), pages 299-339, June.
- Tarun Khanna & Krishna Palepu, 2000. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups," Journal of Finance, American Finance Association, vol. 55(2), pages 867-891, 04.
- Frances A Katrishen & Nicos A Scordis, 1998. "Economies of Scale in Services: A study of Multinational Insurers," Journal of International Business Studies, Palgrave Macmillan, vol. 29(2), pages 305-323, June.
- Mattoo, Aaditya & Rathindran, Randeep, 2006.
"Measuring Services Trade Liberalization and Its Impact on Economic Growth: An Illustration,"
Journal of Economic Integration,
Center for Economic Integration, Sejong University, vol. 21, pages 64-98.
- Mattoo, Aaditya & Rathindran, Randeep & Subramanian, Arvind, 2001. "Measuring services trade liberalization and its impact on economic growth : an illustration," Policy Research Working Paper Series 2655, The World Bank.
- Ali Ataullah & Tony Cockerill & Hang Le, 2004. "Financial liberalization and bank efficiency: a comparative analysis of India and Pakistan," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1915-1924.
- Byeongyong Paul Choi & Mary A. Weiss, 2005. "An Empirical Investigation of Market Structure, Efficiency, and Performance in Property-Liability Insurance," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 72(4), pages 635-673.
- Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-44, April.
- Wu, Xiaohong & Strange, Roger, 2000. "The location of foreign insurance companies in China," International Business Review, Elsevier, vol. 9(3), pages 383-398, June.
- John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan, vol. 19(1), pages 1-31, March.
- Peter J Buckley & Pervez N Ghauri, 2004. "Globalisation, economic geography and the strategy of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan, vol. 35(3), pages 255-255, May.
- Seung Ho Park & Shaomin Li & David K Tse, 2006. "Market liberalization and firm performance during China's economic transition," Journal of International Business Studies, Palgrave Macmillan, vol. 37(1), pages 127-147, January.
- L Alan Winters, 2004. "Trade Liberalisation and Economic Performance: An Overview," Economic Journal, Royal Economic Society, vol. 114(493), pages F4-F21, 02.
- Caves, Richard E, 1974. "Multinational Firms, Competition, and Productivity in Host-Country Markets," Economica, London School of Economics and Political Science, vol. 41(162), pages 176-93, May.
- Julio O de Castro & Klaus Uhlenbruck, 1997. "Characteristics of Privatization: Evidence from Developed, Less-Developed and Former Communist Countries," Journal of International Business Studies, Palgrave Macmillan, vol. 28(1), pages 123-143, March.
- Peltzman, Sam, 1976.
"Toward a More General Theory of Regulation,"
Journal of Law and Economics,
University of Chicago Press, vol. 19(2), pages 211-40, August.
- Vachani, Sushil, 1997. "Economic liberalization's effect on sources of competitive advantage of different groups of companies: the case of India," International Business Review, Elsevier, vol. 6(2), pages 165-184, April.
- Yu-Luen Ma & Nat Pope, 2003. "Determinants of International Insurers' Participation in Foreign Non-Life Markets," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(2), pages 235-248.
- Rudiger Dornbusch, 1992. "The Case for Trade Liberalization in Developing Countries," Journal of Economic Perspectives, American Economic Association, vol. 6(1), pages 69-85, Winter.
- Koen De Backer & Leo Sleuwaegen, 2002.
"Does foreign direct investment crowd out domestic entrepreneurship?,"
Vlerick Leuven Gent Management School Working Paper Series
2002-14, Vlerick Leuven Gent Management School.
- Koen De Backer & Leo Sleuwaegen, 2003. "Does Foreign Direct Investment Crowd Out Domestic Entrepreneurship?," Review of Industrial Organization, Springer, vol. 22(1), pages 67-84, February.
- Fukunari Kimura & Kozo Kiyota, 2007. "Foreign-owned versus Domestically-owned Firms: Economic Performance in Japan," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 31-48, 02.
When requesting a correction, please mention this item's handle: RePEc:eee:iburev:v:17:y:2008:i:1:p:54-77. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.