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The efficiency in Thai financial sector after the financial crisis

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  • Chansarn, Supachet

Abstract

This study aims to investigate the efficiency in Thai financial sector after the financial crisis (1998 – 2004) by looking at the total factor productivity (TFP) growth. Furthermore, the study also investigate the efficiency in commercial bank sector, finance and securities company sector and insurance company sector, and the efficiency in domestic and foreign financial companies. Based on the sample of 12 commercial banks, 13 finance and securities companies and 20 insurance companies listed on the Stock Exchange of Thailand (SET) over the period of 1998 – 2204, our finding reveals that the efficiency in Thai financial sector, commercial bank sector and finance and securities company sector was diminishing over the period of 1998 – 2004, while the efficiency in insurance company sector remained unchanged over the same period. However, the sharp decrease in efficiency in these three sectors occurred only over the period of 1998 – 1999, while the efficiency was decreasing very slightly over the period of 1999 – 2004. The study also suggests that, in overall, domestic financial companies are more efficient than foreign ones. Domestic finance and securities companies are also more efficient than foreign ones, whereas domestic and foreign commercial banks are not different in efficiency. Moreover, domestic and foreign insurance companies are not different in efficiency as well.

Suggested Citation

  • Chansarn, Supachet, 2005. "The efficiency in Thai financial sector after the financial crisis," MPRA Paper 1776, University Library of Munich, Germany, revised Dec 2006.
    • Handle: RePEc:pra:mprapa:1776
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    File URL: https://mpra.ub.uni-muenchen.de/1776/1/MPRA_paper_1776.pdf
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    References listed on IDEAS

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    1. W. Erwin Diewert & Ann Marie Smith, 1994. "Productivity Measurement for a Distribution Firm," NBER Working Papers 4812, National Bureau of Economic Research, Inc.
    2. Mr. Michael Sarel, 1997. "Growth and Productivity in Asean Countries," IMF Working Papers 1997/097, International Monetary Fund.
    3. Disyatat, Piti, 2004. "Currency crises and the real economy: The role of banks," European Economic Review, Elsevier, vol. 48(1), pages 75-90, February.
    4. Eslava, Marcela & Haltiwanger, John & Kugler, Adriana & Kugler, Maurice, 2004. "The effects of structural reforms on productivity and profitability enhancing reallocation: evidence from Colombia," Journal of Development Economics, Elsevier, vol. 75(2), pages 333-371, December.
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    6. repec:bge:wpaper:134 is not listed on IDEAS
    7. Mathinee Subhaswasdikul & Don Nakornthab, 2003. "Banking Sector Fundamentals: Learning from the Recent Bank Lending Contraction," Working Papers 2003-11, Monetary Policy Group, Bank of Thailand.
    8. Nadiri, Ishaq M. & Mamuneas, T.P., 1994. "Infrastructure and Pulbic R&D Investments, and the Growth of Factor Productivity in U.S. Manufacturing Industries," Working Papers 94-26, C.V. Starr Center for Applied Economics, New York University.
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    Cited by:

    1. Itthipong Mahathanaseth & Loren W. Tauer, 2014. "Performance of Thailand banks after the 1997 East Asian financial crisis," Applied Economics, Taylor & Francis Journals, vol. 46(30), pages 3763-3776, October.

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    • E0 - Macroeconomics and Monetary Economics - - General

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