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The similarities and differences in input-output structures and productivity between commercial banks in Eurozone and the Greater Chinese Economic Zone are unclear. The latter includes mainland China, Taiwan, Hong Kong, and Macau. They are recognized as “One China” by major countries on the international stage. People in the four economies speak a common language, mandarin, but they use different currencies. In contrast, monetary integration in the European Union has been developed for decades since the Maastricht Treaty was signed in 1992. Currently, there are 19 member states in Eurozone including Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The Eurozone is special in the aspect that goods, capital, and labor are free movement among member countries, and they adopt a common currency, Euro. Commercial banks are financial intermediaries as well as credit producers. Importantly, they are partners of central banks to manipulate the money supply in economies. In this paper, I study the progress of commercial banks in the two economic zones before and after the 2008 Great Financial Recession by using data from 2007 to 2021. The input and output structures of commercial banks are compared. Moreover, by applying Data Envelopment Analysis, the Metafrontier method, and the Malmquist method of technological changes, I demonstrate relative efficiencies, technology gap ratios, and technological changes of commercial banks in the two zones. The contribution of this research is in the development of commercial banks, as well as monetary integration.
Presenter(s)
Shu-Chin Huang, Ming Chuan University
Input-Output Structures and Productivity of Commercial Banks in Eurozone and the Greater Chinese Economic Zone in 2007–2021: A Comparative Study
Category
Volunteer Session Abstract Submission
Description
Session: [304] TOPICS IN INTERNATIONAL FINANCE
Date: 7/6/2023
Time: 8:15 AM to 10:00 AM
Date: 7/6/2023
Time: 8:15 AM to 10:00 AM