As a part of Fulbright scholar lecture series, Professor Dan Partan and Mrs. Partan are invited by SEM to deliver two lectures on Finance. Park is currently professor at Missouri State University, Professor of Economics & Finance.
Topic 1:
Bank Mergers and Bank Competition: Lessons from the US, Japan and Korea Experiences
Abstract:
After brief review of merger trend in the US and Japan, this study focuses on Korean experience. This paper examines market concentration and competition in the Korean commercial banking market for the period of 1992-2006. While market concentration decreased due to financial regulation before the Asian financial crisis, the Korean banking industry has become increasingly concentrated in the process of restructuring and consolidation since the crisis.
Does increased concentration lessen competition in the Korean banking sector? Contrary to a growing concern over market power in Korean banking, this study finds that increased concentration has not lessened competition.
The H statistic of the Panzar-Rosse model indicates that the Korean commercial banking market was monopolistically competitive during the pre-crisis period and the post-crisis period with temporary deviation to the level of perfect competition during the crisis period.
Topic 2:
Economic and Financial Integration in East Asia
Abstract:
Increasing economic integration in East Asia over the last two decades has been evidenced by consistent growth in intra-regional trade and investment. The purpose of this paper is to examine whether financial integration in addition to economic integration has occurred in East Asia and if so, what the extent of financial integration is.
Greater economic integration in the region,accompanied by financial deregulation and liberalization, has contributed to greater financial integration. This study confirms increasing degree of financial market integration in East Asia by analyzing movements of monthly money market rates before and after the Asian financial crisis of 1997-98.
Convergence of interest rates across the countries in East Asia is examined by analyzing deviations, correlation coefficients and multivariate co-integration tests of interest rates for the sample period of 1990-2004. Multivariate co-integration test for the pre-crisis period indicates the existence of at least two stochastic trends, implying lower degree of financial integration. On the other hand, multivariate co-integration test for the post-crisis period indicates the existence of one common stochastic trend. This result indicates convergence of interest rates among the countries with non-stationary interest rate series and thus implies a higher degree of money market integration in the post-crisis period than in the pre-crisis period.
School of Economics & Management
2010-04-18
