Effects of credit market freedom on output reallocation in China’s banking sector through the intermediation of cost X-inefficiency

• Main Authors: Yap, Woon Kan, Law, Siong Hock, Abdul Ghani, Judhiana
• Format: Article
• Language: English
• Published: Central University of Finance and Economics 2019
• Online Access: http://psasir.upm.edu.my/id/eprint/79583/1/Effects%20of%20credit%20market%20freedom%20on%20output%20reallocation%20.pdf; http://psasir.upm.edu.my/id/eprint/79583/; http://aeconf.com/nov2019.htm

This study examines the effects of credit market freedom on the dynamics of Chinese banks’ output reallocation through the intermediation of cost X-inefficiency. We find two distinct regimes that underpin the mechanism of foreign banks and domestic banks respectively. Credit market freedom is found...