Suchergebnisse

Since the process of economic reform began in China, the Chinese banking system has grown impressively. The aim of this paper is therefore to examine the differences in operational efficiency between China's state-owned commercial banks (SCBs) and shareholding commercial banks using pooled cross-section and time-series data to observe the period between 1996 and 2002. The results showed that, on average, shareholding commercial banks have lower operating costs than the SCBs; that is to say, they display a higher level of "vitality", and greater efficiency. The empirical results also indicated that there has been a significant improvement in the overall operational performance of China's commercial banks in the last few years. By 2002, average operating costs were much lower than during the period 1996-1998. This improvement is clearly related to the growth of the shareholding commercial banks.

This paper sets out to examine the impact of the fiscal contract system on economic growth in China's different provinces. Empirical testing is conducted using the error components model and pooled cross-section (provinces) and time-series data from 1989 to 1993. The empirical results for the whole sample show an inclination towards convergence of regional economic growth, with any increase in regional tax revenue hindering investment and employment due to excessive taxation, which is unfavorable to economic growth. The same finding applies to extra-budgetary revenue. Ranked by their overall strength, the provinces are divided into economically advanced and backward groups for empirical testing. Comparison of the empirical results using a sample of the top and bottom fifteen, in terms of their overall strength, reveals that the economic growth of the top fifteen provinces tends to be divergent. More fiscal revenue and extra-budgetary funds are unfavorable to economic growth and the results are the same for all provinces; the result also remains the same when fiscal revenue is itemized. The difference between the two lies in fiscal expenditure.

PurposeThis study undertakes empirical analysis of the factors that have influenced economic growth in China's provinces during the process of institutional transformation, and to examine whether the disparities in economic growth between provinces have been expanding or diminishing.Design/methodology/approachPooled cross‐section (provinces) and time‐series data are employed, with the error components method also being used for the empirical testing.FindingsEmpirical test results using the error components model have shown that during the period from 1988 to 1998, there was a tendency towards divergence of the economic growth rates achieved by China's provinces, with the variables relating to the employed population, changes in property rights and foreign direct investment (FDI), all having a positive impact on economic growth.Research limitations/implicationsWith China's huge size and the idiosyncrasies of its constituents, it is difficult to quantify the data collected when measuring the geographical, social, institutional and economic ingredients of the provinces.Practical implicationsWhether or not the process of institutional transformation in China succeeds in building a truly efficient system will depend on innovation, a process within which the accumulation and transmission of knowledge plays a very important role.Originality/valueThe establishment of the empirical model in this study is based on convergence testing using the endogenous growth model, and takes into consideration the impact which China's institutional transformation has had on economic growth in individual provinces.

The main purpose of this study is to explore factors determining China's outward FDI (OFDI), with particular emphasis on the unique characteristics of China's economy during the period of institutional transformation. The empirical results obtained in the present study show that Chinese enterprises tend to invest in countries that have a mature economy. Exports have a significantly positive effect on China's OFDI, with the relationship between OFDI and exports in China being a complementary one. The relationship between imports and OFDI for China is one of substitution, as Chinese enterprises have often relied upon the importation of key components as a means of acquiring the technology they need. Exchange rates, monopolistic advantage, foreign exchange reserves and the level of technology intensity, all have a significant impact on China's OFDI, while the GDP growth rate and geographical distance have not had a significant impact. JEL Classification: F200, O160, P450

PurposeThis paper attempts to empirically examine the impact of financial development and bank characteristics on the operational performance of commercial banks in the Chinese transitional economy.Design/methodology/approachPooled cross‐section (banks) and time‐series data are employed in the empirical estimation, with the sample comprising a total of 14 Chinese banks. The period under consideration extends from 1996‐2004. Fixed effects and random effects models are estimated.FindingsEmpirical results exhibit higher levels of moneterization that can translate into better ROA performance for banks. The longer a bank has been in existence, the worse its ROA performance is found to be. Rather than leading to improved profitability, Chinese banks' efforts to develop non‐traditional banking business actually have a negative impact on the ROA. The ROA performance of larger Chinese banks (in terms of assets) is found to be inferior to that of the smaller shareholding commercial banks.Originality/valueParticular emphasis will be placed on the unique characteristics of China's banking industry during this period of institutional transformation.