An Empirical Analysis For The Relationship Between Chinese Banks' OFDI And Banks' Effieciency

Currently, internationalization has become the primary strategic target of Chinese banks. Theoretically, varying from the phenomenon that the domestic and foreign research universally attention to the different influence of the entry of foreign banks on China economy and Chinese banks'efficiency, there are very little research about the expansion of Chinese banks. Practically, in recent years, banks'out-word foreign direct investment (OFDI) developed rapidly and it's influence on domestic banks' efficiency becoming more and more obviously.On the basis of domestic and foreign literature review, Firstly, this paper respectively calculated the efficiency of developed-country banks, developing-country banks and Chinese banks in the method of DEA.And then separately calculated banks'efficiency indexes:technical efficiency, innovation efficiency, pure technical efficiency, scale efficiency and production efficiency. Based on this analysis, we found that:first the efficiency of developed-country Banks are better than developing-country's, Chinese banks'performance between them; Second the developed-country banks'technical efficiency is superior to other indexes, the scale efficiency in developing countries is superior to other efficiency, but scale advantage of developed countries still greater than developing countries; Third the developed-country banks'efficiency improving more because of the technical efficiency increasing, while developing-country banks'efficiency changes is not obvious, but Chinese Banks'efficiency increase quickly because of scale and enhance technological innovation.Then with the five efficiency indexs as explained variables, we analysised the relationship of five efficiency indexes between banks'OFDI, and joined the per capita GDP and inflation, unemployment, and other macroeconomic indicators as control variables. Research found that first, developed-country banks'OFDI will promote the banks'efficiency and this promotion more increase from the introduction of technical equipment and the promoting of the level of technology innovation, the change of its bank technology promotion on banks'efficiency is more than its scale effect. The developed degree and economic efficiency of the developed countries have great effect on thier banks'efficiency, which developed the higher level, inflation rate is lower, the banks'efficiency will higher; Second, in developing countries, the banks' efficiency have no correlation with banks' OFDI, although the banks'OFDI had a positive effect on its banks'scale efficiency, but the scale efficiency had not reflected in the overall production efficiency; Third, Chinese banks'OFDI can promote the banks'efficiency, and in China's development process, the improvement of people's living standard has positive effects on bank efficiency, while Chinese inflation and unemployment had not too much influence.In the base of above empirical research, this paper finally summarized three pathways of the banks'OFDI promoting of banks'efficiency and the conditions suit to the case.and then put forward some policy suggestions of banks'OFDI promoting the banks'efficiency from three angles of investment conditions, investment area and investment methods.