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Identifying Determinants of Branch Performances in A gricultural B ank of C hina: A Spatial Econometric Approach
Author(s) -
Liu YiCheng,
Yang Wen,
Mai ChaoCheng
Publication year - 2015
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12194
Subject(s) - econometric analysis , urbanization , economics , econometric model , panel data , consumption (sociology) , econometrics , welfare economics , economic growth , social science , sociology
This paper identifies determinants of branches’ performances in A gricultural B ank of C hina using the spatial econometric approach. Studies on changes of spatial patterns of a financial industry are scarce, especially at the branch level. This paper is the first attempt to take spatial interdependence and urbanisation effects into account to investigate the determinants of C hina's bank branches’ performances from 1997 to 2011. We have chosen the world's 10th largest bank, the A gricultural B ank of C hina, because it discloses the most complete panel data of all. Empirical evidence indicates that spatial effects and urbanisation have large, statistically significant impacts on branches’ performances. It highly and positively corresponds to tertiary industry output (domestic consumption) and urbanisation. This signals that the ABC has evolved from a state‐owned specialised bank to a listed commercial bank.