Chansarn, Supachet (2005): The efficiency in Thai financial sector after the financial crisis. Forthcoming in: BU Academic Review , Vol. Volume, (July 2007)
Download (148kB) | Preview
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.
|Item Type:||MPRA Paper|
|Institution:||School of Economics, Bangkok University, Thailand|
|Original Title:||The efficiency in Thai financial sector after the financial crisis|
|Keywords:||efficiency; productivity; financial sector; total factor productivity|
|Subjects:||E - Macroeconomics and Monetary Economics > E0 - General|
|Depositing User:||Supachet Chansarn|
|Date Deposited:||16. Feb 2007|
|Last Modified:||30. Apr 2015 05:00|
Bailey, M. Ghosh, D. and Tanna, S., Thai Financial Sector Efficiency prior to the East Asian Financial Crisis, St. Louis: Economics Working Paper Achieve, Washington University at St. Louis, 2002 Chandrachai, A. Tubtimtong, B. and Chockpisansin, K., Total Factor Productivity Growth: Survey Report, Tokyo: Asian Productivity Organization, pp. 296-321, 2004. Erwin W. Diewert and Ann Marie Smith, Productivity Measurement for a Distribution Firm, National Bureau of Economic Research, 1994. Ishaq M. Nadiri and Theofanis P. Mamuneas, Infrastructure and Public R&D Investment, and the Growth of Factor Productivity in US Manufacturing Industries, National Bureau of Economic Research, 1994. Jeffrey I. Bernstein, Total Factor Productivity Growth in the Canadian Life Insurance Industry: 1979-1989, National Bureau of Economic Research, 1998. Jiann-Chyuan Wang and Kuen-Hung Tsai, Productivity Growth and R&D Expenditure I Taiwan’s Manufacturing Firms, National Bureau of Economic Research, 2003 Krugman, P., The Myth of Asia’s Miracle, Foreign Affairs, Vol. 73 (November-December), pp. 62-78, 1994. Marcela Eslava, John Haltiwanger, Adriana Kugler, and Maurice Kugler, The Effect of Structural Reforms on Productivity and Profitability Enhancing Reallocation: Evidence from Colombia, National Bureau of Economic Research, 2004. Methinee Subhaswasdikul and Don Nakornthab, Banking Sector Fundamentals: Learning from the Recent Bank Lending Contraction, Bank of Thailand Discussion Paper, 2003. Noppadol Buranathanung and Warangkana Imudom, Early Warning Indicators of Currency Crises For Thailand: A Parametric Approach, Bank of Thailand Discussion Paper, 2002. Piti Disyatat, Currency Crisis and the Real Economy: The Role of Banks, Bank of Thailand Discussion Paper, 2002. Sarel , M., Growth and Productivity in ASEAN countries, International Monetary Fund, 1997. Srivastava, V., National Report: India In: Measuring Total Factor Productivity: Survey Report, Tokyo: Asian Productivity Organization, pp. 30-49, 2004. Tinakorn, P., National Report: Thailand In: Measuring Total Factor Productivity: Survey Report, Tokyo: Asian Productivity Organization, pp. 192-214, 2001. Tinakorn, P. and Sussankarn, C., Productivity Growth in Thailand, Bangkok: Thailand Development Research Institute, 1994. Tinakorn, P. and Sussankarn, C., Total Factor Productivity Growth in Thailand: 1980-1995, Bangkok: Thailand Development Research Institute, 1998.