
- Economies of scale and scope in Korea's banking industry
- Chung, Unchan; Jung, Jeeman; Ham, Shee-Chang; Kim, Gyuhan
- The Association of Korean Economic Studies
Title |
Economies of scale and scope in Korea's banking industry
Similar Titles
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Sub Title | Evidence from the fourier flexible form |
Material Type | Articles |
Author(English) |
Chung, Unchan; Jung, Jeeman; Ham, Shee-Chang; Kim, Gyuhan |
Publisher |
[Seoul] : The Association of Korean Economic Studies |
Date | 2001 |
Journal Title; Vol./Issue | The Journal of the Korean Economy:vol. 2(no. 1) |
Pages | 25 |
Subject Country | South Korea(Asia and Pacific) |
Language | English |
File Type | Link |
Subject | Economy < Financial Policy |
Holding | AKES |
License | ![]() |
Abstract
This paper examines the efficiency of the Korean banking industry by studying both economies of scale and scope. The Fourier cost function, which is globally flexible, was used to estimate several efficiency measures. The findings of this paper are as follows. First, different data and models can lead to considerable differences. Second, the Fourier flexible functional form is more suitable for estimating an unknown cost function. Third, economies of scale were found in the Korean banking industry, with larger banks being more likely to have a higher scale efficiency than smaller ones. Fourth, the existence of economies of scope was somewhat inconclusive, as results varied across different models.