Banks' Types of Ownership and Efficiency: Evidence from Indonesia
Posted: 17 Apr 2009
Date Written: April 16, 2009
We examine the relationship between banks' types of ownership and banks' efficiency using Greene's "true" panel data stochastic frontier model. We find that, even after taking unobserved heterogeneity more properly into account, state-owned banks in Indonesia are the least efficient banks and joint-venture banks are the most efficient ones.
Keywords: banking, ownership types, efficiency, stochastic frontier
JEL Classification: C23, G21
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