Fresh Patterns of Liberalization, Bank Return and Return Uncertainty in Africa

Simplice Asongu

No 14_016, AAYE Policy Research Working Paper Series from Association of African Young Economists

Abstract: This chapter complements exiting African liberalization literature by providing fresh patterns of two main areas. First, it assesses whether African banking institutions have benefited from liberalization policies in terms of bank returns. Second, it models bank return and return uncertainty in the context of openness policies to examine fresh patterns for the feasibility of common policy initiatives. The empirical evidence is based on 28 African countries for the period 1999-2010. Varying non-overlapping intervals and autoregressive orders are employed for robustness purposes. The findings show that, while trade openness has increased bank returns and return uncertainties, financial openness and institutional liberalization have decreased bank returns and reduced return uncertainty respectively. But for some scanty evidence of convergence in return on equity, there is overwhelming absence of catch-up among sampled countries. Implications for regional integration and portfolio diversification are discussed.

Keywords: Liberalization policies; Capital return; Africa (search for similar items in EconPapers)
JEL-codes: D6 F30 F41 F50 O55 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2014-08, Revised 2014-09
New Economics Papers: this item is included in nep-afr and nep-ban
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Related works:
Working Paper: Fresh Patterns of Liberalization, Bank Return and Return Uncertainty in Africa (2014)
Working Paper: Fresh Patterns of Liberalization, Bank Return and Return Uncertainty in Africa (2014)
Working Paper: Fresh Patterns of Liberalization, Bank Return and Return Uncertainty in Africa (2014)
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