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This paper examines market concentration and its effect on competition in the Chinese commercial banking market. This study also investigates how changes in competition have affected the financial stability of Chinese commercial banks. To test the competitive conditions, we obtained the H statistic of the Panzar-Rosse model from a revenue function equation. The degree of financial stability is estimated by the Z-score formula. The Chinese banking industry has become an increasingly less concentrated market with an increased number of banks. Along with a decreased market concentration, competition in the Chinese banking industry has improved moderately. However, its market structure is still far from a competitive market. An individual bank’s ability to earn higher markup or charge a higher net interest margin contributes to its financial soundness, although a higher degree of market concentration may have negative effect on the financial stability of the entire banking system.

Extends the application of qualitative response analysis to economic education. Uses multinomial logit analysis to identify variables that determine academic performance in an undergraduate money and banking course. Reports results that suggest the key determinants are an adjusted cumulative grade point average and percentile rank on college entrance examinations. (DB)

A study is conducted to examine the factors that govern the profitability of Korean banking sector. The study also evaluates market structure hypothesis and efficient structure hypothesis, to deduce their effect on profitability and performance of banks.

This paper examines market concentration and competition in the South Korean and Chinese commercial banking markets for the period of 1992-2008. This study empirically investigates whether changes in bank concentration have affected the degree of competition in the Korean and Chinese commercial banking industries by estimating the H statistic of the Panzar- Rosse model. We also used the Boone Indicator model to confirm the results from the Panzar- Rosse model. The Korean banking industry has been monopolistically competitive for the entire sample period while the Wald test of the H statistic shows competition in the Korean banking actually increased to the level of perfect competition during the crisis period temporarily. Compared to the banking industry of Korea and other countries, the Chinese banking industry is still highly concentrated and its level of competition is closer to oligopoly. [ABSTRACT FROM AUTHOR]

This paper is to study globalization motives and strategies of Japanese manufacturing industries by analyzing the causes and patterns of foreign direct investment (FDI) of Japanese manufacturing firms. We use regression analysis to determine internally driving-out factors and externally-inducing factors. Japanese FDI strategy has gone through three different stages; from natural resource-seeking investment in the 1950s and 1960s to market-expansion investment in the 1970s and 1980s and to a combination of cost-reducing (low-cost labor-seeking) investment and market-penetrating investment in the 1990s. Our findings show that Japanese FDI in Asia and other developing countries tends to be in labor-intensive sectors where Japanese firms are losing their comparative advantages at home. The main motive for FDI into these regions is low-cost resource seeking. On the other hand, Japanese FDI in the US and Europe tends to be knowledge-intensive sectors where Japanese firms attempt to internalize transaction and information costs by globalizing its production. The main motive for FDI into these regions is market-seeking. [ABSTRACT FROM AUTHOR]

Examines peer grading of essays by business students in a course on the principles of microeconomics. Design of peer grading process; Instructor's scoring categories; Univariate statistics for instructor and peer grading.

An endogenous growth model is presented to examine the determinants of economic growth and income distribution and their relationship. Three major findings from a cross-country analysis of 45 countries are: (1) a higher level of educational attainment of the labour force has an equalizing effect on income distribution, while the larger the dispersion of schooling among the labour force, the greater the income inequality; (2) human capital investment as well as physical capital investment are significant factors contributing to economic growth; and (3) income inequality has a negative effect on economic growth, supporting the existence of a complementary relationship between equity and growth. [ABSTRACT FROM AUTHOR]

Market concentration in the Korean banking industry has markedly increased since the financial crisis of 1997-1998 because of M&As, P&As, and consolidation of banks. With this change, there has been a growing concern over market power in the Korean banking sector. We examine the effects of market concentration on bank efficiency and competition for the period of 1992-2006. Three different indicators of bank inefficiency are used in this study, including X-inefficiency that is derived from the directional technology distance function. The level of competition is measured by both the H-statistic of the Panzar-Rosse model and the level of the net interest margin and its standard deviation. Empirical results indicate that market concentration has not improved bank efficiency through scale economies or scope economies. Instead, recent mergers, acquisitions and consolidation of banks resulted in an increase in inefficiency measured by the three different indicators: Xinefficiency, labor inefficiency and asset inefficiency. While an increase in market share of individual banks improved bank efficiency, an increase in the overall market concentration ratio resulted in lower efficiency. Our study also finds that the Korean banking sector has been monopolistically competitive throughout the sample period except for the crisis period according to the H-statistic. Although an increase in market concentration ratio has not changed the overall level of bank competition, it has a positive significant effect on the level of the average interest margin.