Cost and profit efficiency of banks in Haiti: do domestic banks perform better than foreign banks?

Raulin Cadet

International Journal of Banking, Accounting and Finance, 2015, vol. 6, issue 1, 37-52

Abstract: This paper is, to my knowledge, the first to estimate a stochastic frontier model in which foreign bank ownership interacts with both the frontier and the inefficiency effects. Few studies in this field have focused on countries with a low income level, such as some African and Caribbean nations. This paper considers the case of Haiti, which is an excellent example of a developing economy with a low income level. The results reveal that foreign banks significantly impact both the frontier and the inefficiency effects. Although they enjoy technological progress, compared with domestic banks, foreign banks are less profit efficient.

Keywords: bank costs; domestic banks; foreign banks; cost efficiency; profit efficiency; foreign ownership; Haiti; stochastic frontier modelling; emerging economies; banking industry. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Cost and profit efficiency of banks in Haiti: do domestic banks perform better than foreign banks? (2015)
Working Paper: Cost and profit efficiency of banks in Haiti: do domestic banks perform better than foreign banks? (2008)
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