IDEAS home Printed from https://ideas.repec.org/a/taf/rjapxx/v27y2022i4p620-639.html
   My bibliography  Save this article

Deregulation, contestability and market structure for banks in Taiwan

Author

Listed:
  • Chang-Sheng Liao

Abstract

This is the first study to integrate structural and non-structural approaches into the evaluation of competitive conditions for banks in Taiwan. It is found that the results of structural and non-structural approaches are compatible. This study finds that market share may not have a significant impact on banks’ efficiency but may significantly impact profitability. This implies that banks are willing to sacrifice something to expand their market share, such as not enforcing minimum cost targets and wasting resources to raise an already unrealistic market share target. Furthermore, it is essential to pay attention to the observation that the degrees of competition deteriorated after the Global Financial Crisis (GFC). This argues that the transmission mechanism from market structure to performance occurring through product differentiation is able to exercise market power in banks products and earn supernormal profit, which is normally associated with dominant banks and not with collusive behaviour.

Suggested Citation

  • Chang-Sheng Liao, 2022. "Deregulation, contestability and market structure for banks in Taiwan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 27(4), pages 620-639, October.
    • Handle: RePEc:taf:rjapxx:v:27:y:2022:i:4:p:620-639
    DOI: 10.1080/13547860.2020.1843591
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13547860.2020.1843591
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13547860.2020.1843591?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liao, Chang-Sheng, 2023. "Deregulation, bank efficiency and economic cooperation across China–Taiwan Strait," Journal of Policy Modeling, Elsevier, vol. 45(2), pages 430-444.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rjapxx:v:27:y:2022:i:4:p:620-639. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjap .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.