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Entry Of Bank Foreign Capital In Developing Economies: Measuring Profit & Cost Efficiency

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  • Assist. Ph.D c. Marjan Petreski

    (University American College Faculty of Economics Skopje, Macedonia)

Abstract

The paper aims at acknowledging the efficiency effects of bank privatization upon the entry of strategic foreign investor. Thus, a broad experience from the developing countries is reviewed. General conclusion is that the foreign capital infusion improves the profit and cost efficiency of the banks. The paper also investigates the various methodologies that academics employ when they investigate the topic.

Suggested Citation

  • Assist. Ph.D c. Marjan Petreski, 2009. "Entry Of Bank Foreign Capital In Developing Economies: Measuring Profit & Cost Efficiency," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(13), pages 39-45, NOVEMBER.
    • Handle: RePEc:aio:rteyej:v:1:y:2009:i:13:p:39-45
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    References listed on IDEAS

    as
    1. Evan Kraft & Richard Hofler & James Payne, 2006. "Privatization, foreign bank entry and bank efficiency in Croatia: a Fourier-flexible function stochastic cost frontier analysis," Applied Economics, Taylor & Francis Journals, vol. 38(17), pages 2075-2088.
    2. George Clarke & Robert Cull & Maria Soledad Martinez Peria & Susana M. Sanchez, 2001. "Foreign Bank Entry : Experience, Implications for Developing Countries, and Agenda for Further Research," World Bank Publications - Reports 19504, The World Bank Group.
    3. John P. Bonin & Yiping Huang, 2002. "Foreign Entry into Chinese Banking: Does WTO Membership Threaten Domestic Banks?," The World Economy, Wiley Blackwell, vol. 25(8), pages 1077-1093, August.
    4. George Clarke & Robert Cull & Maria Soledad Martinez Peria & Susana M. Sanchez, 2001. "Foreign Bank Entry : Experience, Implications for Developing Countries, and Agenda for Further Research," World Bank Publications - Reports 19504, The World Bank Group.
    5. Nakane, Marcio I. & Weintraub, Daniela B., 2005. "Bank privatization and productivity: Evidence for Brazil," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 2259-2289, August.
    6. Beck, Thorsten & Crivelli, Juan Miguel & Summerhill, William, 2005. "State bank transformation in Brazil - choices and consequences," Journal of Banking & Finance, Elsevier, vol. 29(8-9), pages 2223-2257, August.
    7. Laurent Weill, 2003. "Banking efficiency in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 569-592, September.
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    More about this item

    Keywords

    Privatization; Foreign capital; Cost and profit efficiency; Measurement;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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