Spatial Competition of the Bank Branch Networks in Taiwan
2018/07/17
研討會日期 : 2018-07-17
時間 : 14:30
主講人 : Professor Ching-I Huang (黃景沂)
主持人 : Professor Meng-Yu Liang
地點 : Conference Room B110
演講者簡介 : Professor Huang received his Ph.D. in Economics at Northwestern University. He is currently an Associate Professor at National Taiwan University. His research fields are Industrial Organization, and Microeconometrics.
演講摘要 : This research aims to empirically analyze the spatial competition of branch network in the banking industry. The theoretical prediction of the competition effect is ambiguous because business-stealing effect and positive externality in this industry would have opposite impacts on a bank’s profitability of opening a branch. I collect address information for all bank branches in Taiwan for a 48-year period (from 1969 to 2017). The addresses of all bank branches are geocoded to quantitatively analyze the spatial competition in the choice of branch location. Controlling for observed socioeconomic variables, I estimate the effect on a bank’s branch number in a township caused by nearby branches operated by own and rival banks. I find that competition of rival banks’ branches within the same township generally has a negative but diminishing effect on the profitability of opening a bank branch. On the other hand, there is a positive effect from nearby branches of the same bank, suggesting the existence of economies of density in this industry.
