The impact of financial liberalization on the performance of Thai banks

Jonathan E. Leightner, C. A. Knox Lovell

Research output: Contribution to journalArticle

168 Citations (Scopus)

Abstract

Using best practice production frontiers, we constructed Malmquist growth indexes and productivity indexes for each Thai bank for 1989-1994. We constructed these indexes for two different specifications of the services banks provide: one derived from the objectives of the banks themselves, and the other derived from the objectives of the Bank of Thailand. We found that, when bank objectives were used, the average bank in Thailand experienced relatively rapid growth in production (relative to the previous year's best practice) and in total factor productivity. When Bank of Thailand objectives were used, similar levels of rapid growth relative to best practice were found, but total factor productivity declined for Thai banks and increased for foreign banks

Original languageEnglish (US)
Pages (from-to)115-131
Number of pages17
JournalJournal of Economics and Business
Volume50
Issue number2
StatePublished - Dec 1 1998

Fingerprint

Financial liberalization
Best practice
Thailand
Total factor productivity
Production frontier
Productivity index
Foreign banks
Malmquist

Keywords

  • Efficiency
  • Productivity change
  • Thai banking

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

Cite this

The impact of financial liberalization on the performance of Thai banks. / Leightner, Jonathan E.; Knox Lovell, C. A.

In: Journal of Economics and Business, Vol. 50, No. 2, 01.12.1998, p. 115-131.

Research output: Contribution to journalArticle

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