(Luận văn) an analysis of the economic efficiency of the banking sector in vietnam

t to UNIVERSITY OF ECONOMICS ERASMUS UNVERSITY ROTTERDAM ng hi ep HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE NETHERLANDS w n lo ad VIETNAM – THE NETHERLANDS y th PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS ju yi pl ua al n AN ANALYSIS OF THE ECONOMIC EFFICIENCY OF THE BANKING SECTOR IN VIETNAM n va ll fu oi m at nh BY z z NGUYEN THI PHUONG THAO k jm ht vb om l.c gm an Lu MASTER OF ARTS IN DEVELOPMENT ECONOMICS n va th i ey t re HO CHI MINH CITY, NOVEMBER 2015 t to ABSTRACT ng hi This study measures economic efficiency of commercial banks in Viet Nam and its ep determinants The Stochastic Frontier Model is applied for a profit function We include internal factors (including price of fund, price of physical capital, price of labor, price of loan and price w n of other earning assets) and macroeconomic factors (economic growth, inflation rate, and other lo ad macroeconomic environment variables) in the profit function The empirical results show that the y th efficiency of Vietnamese commercial banks seems to be fluctuated steeply over the period 2008- ju 2013 In terms of the efficiency of different groups of commercial banks, the profit efficiency of yi the State-owned commercial banks and Private commercial banks follow different trend pl ua al Particularly, the state owned commercial bank’s group seems to have extremely higher profit efficiency score then private commercial bank n n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th ii t to LIST OF ABBREVIATION ng hi ep w n lo Least squares with dummy variables GLS Generalized least squares SFA Stochastic Frontier Analysis SFM Stochastic Frontier Model DEA Development Envelopment Analysis PE Profit efficiency CRER Credit risk LIQD Liquidity ad LSDV ju y th yi CON pl Banking development ua al DEV Concentration Inflation rate GDP GDP SIZE SIZ PROFIT Total profit PBT Profit before tax X1 Labor X2 Capital X3 Fund W1 Price of labor W2 Price of capital W3 Price of fund Y1 Loan Y2 Other earning asset P1 Price of loan P2 Price of other earning asset TE Technical efficiency EE Economic efficiency AE Allocative efficiency Obs Number of observations SOBs State-owned commercial banks PCBs Private commercial banks n INF n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th iii t to ng hi LIST OF TABLES ep w Table 3.1: Variables of potential correlates of profit efficiency function 32 n lo ad Table 3.2: Data sample of observations over period 2008-2013 43 ju y th Table 4.1: Overview of variable in profit function 35 yi Table 4.2: A summary statistics of profit before tax, inputs, outputs and prices used in the profit efficiency estimation for the whole period 2008-2013 38 pl al n ua Table 4.3: A summary statistics of inputs, outputs and prices used in the profit efficiency estimations: (million VND units for X1, X2, X3, Y1, Y2) 39 va Table 4.4: A summary statistics of potential correlated of profit efficiency 40 n fu ll Table 4.5: Potential correlates of profit before tax (PBT) with time-invariant fixed-effects model 41 oi m at nh Table 4.6: Banking profit efficiency scores in the period 2008-2013 with time-invariant fixedeffects model 42 z z Table 4.7: Potential correlates profit efficiency through time-invariant fixed-effect model 43 vb k jm ht Table 4.8: Potential correlates of profit before tax (PBT) with Cornwell et al (1990) time varying fixed-effects model 44 l.c gm Table 4.9: Banking profit efficiency scores in the period 2008-2013 with time-varying Battese and Coelli (1995) model 45 om Table 4.10: Potential correlates profit efficiency with Kumbhakar (1990) time-varying parametric model (half-normal) 46 an Lu n va Table 4.11: Average banking profit efficiency score of 27 commercial bank in Vietnam and its ranking from 2008 to 2013 48 ey t re th iv t to LIST OF FIGURES ng hi Figure 1.1: Input-oriented efficiency 13 ep Figure 1.2: Output-oriented efficiency 14 w Figure 4.1: Graph of scatter between Profit before tax (Pbt) and total number of staff (X1) from 2008 to 2013 36 n lo ad ju y th Figure 4.2: Graph of scatter between Profit before tax (Pbt) and total fixed - asset (X2) from 2008 to 2013 36 yi Figure 4.3: Graph of scatter between Profit before tax (Pbt) and total deposit from customer (X3) from 2008 to 2013 .36 pl al n ua Figure 4.4: Graph of scatter between Profit before tax (Pbt) and total loan from customers (Y1) from 2008 to 2013 36 va n Figure 4.5: Graph of scatter between Profit before tax (Pbt) and total asset (Y2) from 2008 to 2013 36 ll fu oi m Figure 4.6: Graph of scatter between Profit before tax (Pbt) and Price of labor (W1) from 2008 to 2013 36 nh at Figure 4.7: Graph of scatter between Profit before tax (Pbt) and Price of capital (W2) from 2008 to 2013 37 z z vb jm ht Figure 4.8: Graph of scatter between Profit before tax (Pbt) and Price of fund (W3) from 2008 to 2013 37 k Figure 4.9: Graph of scatter between Profit before tax (Pbt) and Price of loan (P1) from 2008 to 2013 37 l.c gm om Figure 4.10: Graph of scatter between Profit before tax (Pbt) and Price of other earning asset (P2) from 2008 to 2013 37 an Lu Figure 4.11: Profit efficiency score from 2009 to 2013 with time-invariant fixed-effects model 43 n va ey t re Figure 4.12: Profit efficiency score of SOBs, PCBs and all banks from 2009 to 2013 with timevarying Battese and Coelli (1995) model 46 th v t to LIST OF APPENDIXES: ng hi Appendix 1: List of Vietnamese commercial banks in Vietnam Data was collected from ep www.taichinhvietnam.com and sorted based on their charter capital 57 w Appendix 2: The result of estimation about the determinants of banking profit before tax and its n lo potential correlate through different type of model .59 ad y th Appendix 3: Descriptive statistics of profit efficiency estimation through different type of model ju 67 yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th vi t to TABLE OF CONTENTS ng ABSTRACT ii hi ep LIST OF ABBREVIATION iii LIST OF TABLES iv w LIST OF FIGURES v n lo LIST OF APPENDIXES: vi ad CHAPTER I: INTRODUCTION y th Introduction: Research objective ju yi pl CHAPTER II: LITERATURE REVIEW al Theory of the efficiency 2 Reviews of empirical study on bank efficiency n ua va n 2.1 Overview on bank efficiency fu ll 2.2 Determinants of banking efficiency m Bank efficiency measurement oi 2.3 at nh CHAPTER III: DATA AND METHODOLOGY 21 Overview of the banking industry in Vietnam 21 Analytical framework 23 Research method 23 Theoretical Model 23 Estimation Methodology 24 Model specification 25 Functional form 26 Profit Efficiency 26 Variables description 28 z z k jm ht vb om l.c gm an Lu CHAPTER IV: RESULTS AND DISCUSSION 35 Regression results 38 2.1 Time-invariant fixed-effects model 38 vii th ey Descriptive statistics 35 t re n va 10 Data sources: 33 t to 2.2 Time-varying fixed-effects model 42 ng CHAPTER V: CONCLUSION 47 hi ep REFERENCES 49 APPENDIX 54 w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th viii Vietnam – Netherlands Programme for M.A in Development Economics CHAPTER I: INTRODUCTION Introduction: t to In most countries, the banking sector is considered as a key indicator to ensure the ng hi national economy operates smoothly Banking industry is widely considered as the backbone ep of an economy and highly regulated in many countries Banks usually has been considered as key players in providing capital and stimulating economic development In the study of w n Demirguc & Huizinga (2000), it showed that when an economy is developed at a certain lo y th system ad level, it requires an intensive support from the stable and sustainable national financial ju Prior studies in the body of literature indicate that there are a wide range of factors yi affecting the bank efficiency which can be classified into two main groups namely external pl ua al factors (e.g macroeconomic factors and industrial factors) and internal factors of commercial banks (e.g size, losses, liquidity, and other factors) Particularly, Hasan and Marton (2003) n n va examines the relationship between the development and efficiency of banking sector while fu Hou, Wang, and Zhang (2014) measure the linkages among market structure, risk taking and ll efficiency of commercial banks Due to their importance on the financial sector and their m oi influence on the national economy, this sector requires a high regulation by the government nh However, in most developing countries like Vietnam, there is lacks of perfect regulation to at z support this sector to stabilize and develop Like other countries, the banking system in z vb Vietnam provides many products from retail banking such as saving accounts, deposits, ht credit/debit card, mortgage, loans to commercial banking such as business loan, capital jm equity, risk management, and credit services k gm As commercial banks have evolved in Vietnam before the investment banks, this l.c service is one of the most sensitive business which suffers direct and indirect impacts on om several intrinsic obstacles of the economy as well as the external effects, thus stabilizing the a Lu currency and the banking system play an important factor, primarily in the financial system stabilization Therefore, understanding the efficiency of the banking system as well those n y te re efficiency and economic efficiency We choose economic efficiency as this is more n scholars all over the world In measuring efficiency, people usually choose between technical va factors affecting the banking operations attracts a lot of attention from many economists and comprehensive In this thesis, the profit function is used to measure economic efficiency Vietnam – Netherlands Programme for M.A in Development Economics Research objective While the capital funds raised for the national economy from those commercial banks t to are enormous, limited research was carried out about how these banks operate and whether ng they operate efficiently With a proper measurement about banking efficiency together with a hi ep wealth of predictive determinants will help the public to indicate how well a certain commercial bank operate in the competitive market like Vietnam Secondly, by improving w the performance of individual banks, the whole national banking system will function much n lo more efficiently and effectively However, at the moment, most of studies focused on ad qualifying the efficiency of the commercial banks (Nguyen, Roca, & Sharma, 2004) or y th determining certain large-scale economic factors affecting commercial banks (Athanasoglou, ju yi Brissimis, & Delis, 2008) without quantifying these factors to rank these commercial banks pl in the global scale Hence, the aim of this thesis is to verify the connection between the al n banks in Vietnam ua current financial growth at the national scale and the efficiency performance of commercial va n In details, this thesis is to understand the connection between the economic efficiency fu ll and the economic growth of the banking system based on two following smaller objectives: oi m  How efficient are commercial banks in Vietnam? at nh  Which factors affect the economic efficiency of commercial banks? z This is the research of Vietnamese banks efficiency that will convey the managers to z vb identify the banks’ weakness as well as the causes of those weaknesses so that they can come ht up with the right strategies, which will bring the best result given the same level of resource jm inputted In addition, this will be a useful research to analyze inefficiencies and minimize it in k gm order to improve the performance of Vietnamese banking industry Moreover, this research om for foreign investors to start financing their equity in this dynamic industry l.c also demonstrates the reality of Vietnamese banking industry, which will be a useful guide n a Lu n va y te re Vietnam – Netherlands Programme for M.A in Development Economics Chortareas, G E., Garza-García, J G., and Girardone, C (2012) Competition, efficiency and interest rate margins in latin american banking International Review of t to Financial Analysis, 24(0), 93-103 ng Coelli, T J., Rao, D S P., O’Donnell, C J., and Battese, G E (2005) Data envelopment hi ep analysis An introduction to efficiency and productivity analysis (pp 161-181): Springer US w n Delis, M D (2012) Bank competition, financial reform, and institutions: The importance lo ad of being developed Journal of Development Economics, 97(2), 450-465 y th Economist Intelligence Unit (2005) Vietnam regulations: Banking sector is liberalising ju yi (pp n/a-n/a) New York, United States pl ua al Färe, R., Grosskopf, S., and Lovell, C A K (1988) Scale elasticity and scale efficiency Journal of Institutional and Theoretical Economics (JITE) / Zeitschrift für die n n va gesamte Staatswissenschaft, 144(4), 721-729 fu Farrell, M J (1957) The measurement of productive efficiency Journal of the Royal ll oi m Statistical 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Vietnam – Netherlands Programme for M.A in Development Economics APPENDIX Appendix 1: List of Vietnamese commercial banks in Vietnam Data was collected from t to www.taichinhvietnam.com and sorted based on their charter capital (Billion VND ng dong) hi ep Name of bank No Charter Year of capital opening Type of banks w n lo Agribank ad Vietcombank ju y th Vietinbank 1988 State-owned commercial bank 20.230 1988 State-owned commercial bank 19.698 1963 State-owned commercial bank 14.600 1957 Joint-stock commercial bank 12.355 1989 Joint-stock commercial bank 11.750 1991 Joint-stock commercial bank 11.252 1993 Joint-stock commercial bank 1989 Joint-stock commercial bank 2011 Joint-stock commercial bank 2013 Joint-stock commercial bank yi 20.708 pl BIDV n ua al Eximbank n va Maritime Bank ll fu Asia Commercial Bank m 10.739 oi Sacombank nh 10.583 at Saigon commercial bank z 9.000 11 Techcombank 8.788 12 Military Bank 7.300 1990 Joint-stock commercial bank 13 LienVietPostBank 6.460 2008 Joint-stock commercial bank 14 VPBank 6.347 1993 Joint-stock commercial bank 15 HDBank 5.450 1993 Joint-stock commercial bank 16 SeABank 5.335 1993 Joint-stock commercial bank 17 Saigon-Hanoi commercial bank 5.000 1993 Joint-stock commercial bank 18 Construction Bank 5.000 2015 Joint-stock commercial bank 19 DongA Bank 4.500 1992 Joint-stock commercial bank z 10 PV Bank vb ht 1993 Joint-stock commercial bank k jm om l.c gm n a Lu n va y te re 54 Vietnam – Netherlands Programme for M.A in Development Economics No Name of bank Charter Year of capital opening Type of banks t to ng 4.250 1996 Joint-stock commercial bank 21 Oceanbank 4.000 1993 Joint-stock commercial bank 4.000 1993 Joint-stock commercial bank 3.500 1995 Joint-stock commercial bank 24 Oriented commercial bank 3.400 1996 Joint-stock commercial bank 25 Dai A Bank 3.100 1996 Joint-stock commercial bank 3.018 2005 Joint-stock commercial bank 3.000 1994 Joint-stock commercial bank 3.000 1992 Joint-stock commercial bank 3.000 1995 Joint-stock commercial bank 3.000 1992 Joint-stock commercial bank 1987 Joint-stock commercial bank 2003 Joint-stock commercial bank 2007 Joint-stock commercial bank hi 20 Vietnaminternational commercial bank ep 22 Southern Bank w 23 National citizen commercial bank n lo ad ju y th n n va ll fu 30 Nam A Bank ua 29 KienLong Bank al 28 Viet Capital Bank pl 27 NAS bank yi 26 GPBank oi m 31 Saigonbank 3.000 nh 3.000 33 VietBank 3.000 34 Petrolimex Bank 3.000 1993 35 TienPhongBank 3.000 2008 Joint-stock commercial bank 36 An Binh Bank 2.700 1993 Joint-stock commercial bank 37 BaoVietBank 1.500 2008 Joint-stock commercial bank at 32 VietABank z z ht vb Joint-stock commercial bank k jm om l.c gm n a Lu n va 2.1 Schmidt and Sickles, 1984 with fixed effect model 55 y tax and its potential correlate through different type of model te re Appendix 2: The result of estimation about the determinants of banking profit before Vietnam – Netherlands Programme for M.A in Development Economics sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(fe) t to Time-invariant fixed-effects model (LSDV) Group variable: bank Time variable: year ng hi Number of obs Number of groups Obs per group: avg max ep = = = = = 120 27 4.4 lnpbt w Coef Std Err z P>|z| [95% Conf Interval] n lo ad y th yi pl 3.05 3.47 -0.11 -1.23 -2.48 8.82 0.002 0.001 0.910 0.220 0.013 0.000 1.501659 1479309 -.7220238 -.6540186 -6.687587 14.47152 6.895126 5314859 6431397 1505394 -.7827683 22.74203 n ua 1.2368158 55908501 1.37591 0978474 3482624 2052482 1.506359 2.109864 al sigma_u sigma_v 4.198393 3397084 -.039442 -.2517396 -3.735177 18.60677 ju lnp1 lnp2 prlabor prcapital prfund _cons n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 56 Vietnam – Netherlands Programme for M.A in Development Economics 2.2 (Schmidt and Sickles, 1984) with random effect model sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(regls) t to ng hi Time-invariant Random-effects model (FGLS) Group variable: bank Time variable: year ep Number of obs Number of groups Obs per group: avg max = = = = = 120 27 4.4 w n lnpbt lo Coef ad ju yi pl z 1.351252 1090995 3946904 2286064 1.48116 2.164916 [95% Conf Interval] 0.019 0.002 0.311 0.851 0.041 0.000 529838 1289026 -.3739377 -.4051693 -5.925203 7.402626 5.826647 5565648 1.17322 4909514 -.1191634 15.88894 n ua n va 60162966 55908501 P>|z| 2.35 3.14 1.01 0.19 -2.04 5.38 al sigma_u sigma_v 3.178243 3427337 3996413 0428911 -3.022183 11.64578 y th lnp1 lnp2 prlabor prcapital prfund _cons Std Err ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 57 Vietnam – Netherlands Programme for M.A in Development Economics 2.3 Battese and Coelli (1988) with u truncated normal sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(bc88) t to ng hi Time-invariant model (truncated-normal) Group variable: bank Time variable: year ep Number of obs Number of groups Obs per group: avg max w 120 27 4.4 = = 0.0004 22.90 n = = = = = lo ad Log likelihood = Prob > chi2 Wald chi2(5) -136.8706 ju y th lnpbt Coef Std Err z P>|z| [95% Conf Interval] yi pl Frontier 3.694703 3457527 1665881 -.1094272 -3.366826 17.62234 /lnsigma2 /ilgtgamma /mu 4090443 1.36415 2.272285 3091456 4394098 6328651 sigma2 gamma sigma_u2 sigma_v2 1.505378 7964334 1.198934 3064448 4653811 0712403 4694979 0467788 1.279968 0950796 3458668 2035166 1.396376 2.452743 n ua al lnp1 lnp2 prlabor prcapital prfund _cons n va 0.004 0.000 0.630 0.591 0.016 0.000 1.186012 1594 -.5112983 -.5083124 -6.103673 12.81505 6.203395 5321053 8444745 289458 -.629979 22.42963 1.32 3.10 3.59 0.186 0.002 0.000 -.1968699 5029228 1.031892 1.014959 2.225377 3.512678 8212975 623146 2787346 2147601 2.759249 9025054 2.119133 3981296 ll fu 2.89 3.64 0.48 -0.54 -2.41 7.18 oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 58 Vietnam – Netherlands Programme for M.A in Development Economics 2.4 Cornwell et al (1990) time varying effects which follows a function of time sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(fecss) t to ng hi ep Time-varying fixed-effects model (CSS Modified-LSDV) Number of obs Group variable: bank Number of groups Time variable: year Obs per group: avg max w n = = = = = 120 27 4.4 lo ad Coef Std Err ju y th lnpbt 2.472617 4491118 1307675 -.2320278 -2.534667 sigma_u sigma_v 1.2025942 33526097 yi lnp1 lnp2 prlabor prcapital prfund pl 1.708415 1018857 5388136 2207682 1.862956 z P>|z| 0.148 0.000 0.808 0.293 0.174 -.8758157 2494195 -.9252878 -.6647255 -6.185994 5.821049 6488041 1.186823 2006699 1.11666 n ua al 1.45 4.41 0.24 -1.05 -1.36 [95% Conf Interval] n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 59 Vietnam – Netherlands Programme for M.A in Development Economics 2.5 Kumbhakar (1990) with the time varying sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(kumb90) t to ng hi Time-varying parametric model (half-normal) Group variable: bank Time variable: year ep Number of obs Number of groups Obs per group: avg max w n lo Log likelihood = Prob > chi2 Wald chi2(5) -114.0995 = = = = = 120 27 4.4 = = 0.0000 64.27 ad Coef Std Err z P>|z| [95% Conf Interval] ju y th lnpbt Frontier yi 4.163957 3315176 1.013599 074006 -4.42011 7.890089 b c 9882546 -.2068163 172745 0328004 /sigmau_2 /sigmav_2 15.93036 2199874 7.255593 0332395 sigma_u sigma_v lambda 3.991285 4690281 8.509693 9089293 0354345 9054828 4.39 13.24 9.40 9977763 0822256 2979419 1806788 1.089532 2.206345 n ua al 4.17 4.03 3.40 0.41 -4.06 3.58 2.208352 1703584 4296433 -.2801179 -6.555553 3.565733 6.119563 4926768 1.597554 4281299 -2.284666 12.21445 0.000 0.000 6496806 -.271104 1.326829 -.1425287 2.20 6.62 0.028 0.000 1.709659 1548391 30.15106 2851357 1.307539 393496 6.73498 5.490998 533981 10.28441 n va 0.000 0.000 0.001 0.682 0.000 0.000 m pl lnp1 lnp2 prlabor prcapital prfund _cons fu Bt ll 5.72 -6.31 oi at nh z z ht vb 0.000 0.000 0.000 k jm om l.c gm n a Lu n va y te re 60 Vietnam – Netherlands Programme for M.A in Development Economics 2.6 Battese and Coelli (1992) with a technical efficiency and truncated normal distribution at zero t to sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(bc92) ng hi Number of obs Number of groups Obs per group: avg max ep Time-varying decay model (truncated-normal) Group variable: bank Time variable: year w 120 27 4.4 = = 0.0000 66.11 n = = = = = lo ad Log likelihood = Prob > chi2 Wald chi2(5) -125.4620 ju y th lnpbt Coef Std Err z P>|z| [95% Conf Interval] yi pl Frontier 4.70956 2310566 1.083232 2178284 -4.566797 5.704297 1.123927 0913601 3431991 2079262 1.229133 2.791917 /lnsigma2 /ilgtgamma /mu /eta 7532815 1.875455 9752062 -.2272321 5956937 6989891 9503405 0749525 sigma2 gamma sigma_u2 sigma_v2 2.123958 8670882 1.841659 2822991 1.265229 0805559 1.263531 0424967 n ua al lnp1 lnp2 prlabor prcapital prfund _cons n va 0.000 0.011 0.002 0.295 0.000 0.041 2.506703 0519941 4105743 -.1896995 -6.975854 2322407 6.912417 410119 1.75589 6253563 -2.15774 11.17635 0.206 0.007 0.305 0.002 -.4142568 5054614 -.8874269 -.3741363 1.92082 3.245449 2.837839 -.0803279 6608313 6237419 -.6348154 1990071 6.826553 9625092 4.318134 3655912 ll fu 4.19 2.53 3.16 1.05 -3.72 2.04 oi m 1.26 2.68 1.03 -3.03 at nh z z ht vb k jm om l.c gm n a Lu n va y te re 61 Vietnam – Netherlands Programme for M.A in Development Economics 2.7 Battese and Coelli (1995) with a technical efficiency and truncated normal distribution at zero t to sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(bc95) ng hi ep Inefficiency effects model (truncated-normal) Group variable: bank Time variable: year w Number of obs Number of groups Obs per group: avg max 120 27 4.4 = = 0.0000 78764.35 n = = = = = lo ad Log likelihood = Prob > chi2 Wald chi2(5) -151.3222 Coef Std Err yi z P>|z| [95% Conf Interval] pl al Frontier ju y th lnpbt lnp1 lnp2 prlabor prcapital prfund _cons 3.293586 2042989 1.049241 2874152 -3.850424 3.883808 _cons 9885463 2770013 3.57 _cons 4658394 2655103 1.75 0.079 _cons -19.17327 26.28532 -0.73 0.466 sigma_u sigma_v lambda 1.26228 0000686 18389.84 1675742 0009021 1675951 7.53 0.08 1.1e+05 0.000 0.939 0.000 n ua 9211122 0777567 6974293 371301 1.337038 2.182924 n va ll fu 3.58 2.63 1.50 0.77 -2.88 1.78 1.488239 0518986 -.3176957 -.4403213 -6.470971 -.3946456 5.098932 3566992 2.416177 1.015152 -1.229878 8.162261 0.000 4456337 1.531459 -.0545512 9862299 Mu oi m 0.000 0.009 0.132 0.439 0.004 0.075 at nh z Usigma z ht vb Vsigma -70.69155 k jm 32.34501 1.637409 1.06e+07 18390.17 om l.c gm 973093 4.46e-16 18389.52 n a Lu n va y te re 62 Vietnam – Netherlands Programme for M.A in Development Economics 2.8 Lee and Schmidt (1993) with a function with the time function is replaced by a set of dummy variables t to sfpanel lnpbt lnp1 lnp2 prlabor prcapital prfund,model(fels) ng hi ep Time-varying fixed-effects model (Iterative LS) Number of obs Group variable: bank Number of groups Time variable: year Obs per group: avg max w n lo = = = = = 120 27 4.4 ad Coef Std Err ju z P>|z| [95% Conf Interval] yi pl Frontier y th lnpbt n va 2.51 1.46 1.09 4.28 -2.22 0.012 0.144 0.277 0.000 0.027 7041766 -.0474558 -.3847647 4081931 -5.897173 5.748115 324535 1.341342 1.098155 -.3632501 ll fu 82028172 57796677 n sigma_u sigma_v 1.286743 0948973 4403415 1760138 1.411741 ua 3.226146 1385396 4782888 7531739 -3.130212 al lnp1 lnp2 prlabor prcapital prfund oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 63 Vietnam – Netherlands Programme for M.A in Development Economics Appendix 3: Descriptive statistics of profit efficiency estimation through different type of model t to sum eff1 eff2 eff3 eff4 eff5 eff7 eff8 eff10 ng hi Obs Mean eff1 eff2 eff3 eff4 eff5 120 120 162 120 120 1897591 3040625 2414794 4292832 331005 5435435 5957178 2356303 Std Dev Min Max 2471796 246255 1820754 2636527 2549261 0170183 0618459 0417799 0276929 0079115 1 7498389 9224332 9998103 2574238 3225025 2609426 0175849 028772 0060706 9540524 9999998 ep Variable w n lo ad ju y th 162 120 118 yi pl n ua al eff7 eff8 eff10 n va ll fu oi m at nh z z ht vb k jm om l.c gm n a Lu n va y te re 64