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|dc.description.abstract||The paper estimates and compares cost efficiency of domestic and foreign banks in Thailand by usingbank-panel data between 1995 and 2003. It also examines the effect of foreign bank entry on bankingefficiency in Thailand since the significant acquisitions by foreign banks after the 1997 financial crisis.The widely used translog functional form specification is statistically tested by pooled regressions. Theestimated results suggest that the unit costs of production of domestic and foreign banks areindistinguishable, although the two types of banks focus on different areas of the banking business. Thefindings suggest that based on bank operating efficiency, if foreign banks represent the best-practice banksin the industry, to a large extent, domestic banks in Thailand have caught up to the best-practice standardsthroughout 1995-2003, significantly after the 1997 financial crisis . This may be due to greater foreignparticipation through acquisitions, which increases the competitive pressure in the banking industry, andalso to financial restructuring of domestic banks, which increases the cost efficiency of domestic banks,thereby benefiting banking customers.||en_US|
|dc.relation.ispartofseries|||aProceedings of the German Development Economics Conference, Kiel 2005 / Verein für Socialpolitik, Research Committee Development Economics |x9||en_US|
|dc.subject.keyword||Capital and Ownership Structure||en_US|
|dc.title||Cost Efficiency of Domestic and Foreign Banks in Thailand: Evidence from Panel Data||en_US|
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