Good institutions and banking sector competitiveness: A semi-parametric evidence

Aklesso Y.G. Egbendewe and Djoulassi K. Oloufade

Finance Research Letters, 2020, vol. 36, issue C

Abstract: This research examines the role of institutions’ quality in the competitiveness of the banking sector in developing countries. Hence, semi-parametric regression models are used with bank level detailed panel data from 2000 to 2014 drawn from the West African Economic and Monetary Union (WAEMU) countries. The results suggest that, depending on the types of institutional variables used to condition the proposed dynamic Panzar–Rosse H-statistics, some institutions’ quality variables such as corruption control, government effectiveness, and the rule of law display U-shaped relationships. Efforts in institutions’ quality improvement above certain estimated thresholds are required to enhance banking market competitiveness

Keywords: Market power; Financial intermediation; Efficient banking markets; Institutions’ quality (search for similar items in EconPapers)
JEL-codes: C14 G21 L16 O16 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:36:y:2020:i:c:s1544612319304076

DOI: 10.1016/j.frl.2019.101342

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