Bank efficiency and openness in Africa: do income levels matter?

Simplice Asongu

MPRA Paper from University Library of Munich, Germany

Abstract: The business of this study is to investigate what role openness play in bank efficiency with respect to income levels. From a panel of 29 countries spelling from 1987 to 2008, we provide evidence that; trade and financial openness, breed less bank efficiency in low income countries; justifying the absence of a banking comparative advantage in said countries and therefore a likely palaver of over-liquidity. Results for middle income countries are not significant. For policy implication, it holds that; openness will increase the economic cost of banks in low income sampled countries. Bearing this in mind, trade openness will be more detrimental than financial openness.

Keywords: Bank efficiency; Openness; Panel; Africa (search for similar items in EconPapers)
JEL-codes: D6 F3 F4 (search for similar items in EconPapers)
Date: 2010-11-26
New Economics Papers: this item is included in nep-afr and nep-ban
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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https://mpra.ub.uni-muenchen.de/27025/1/MPRA_paper_27025.pdf revised version (application/pdf)

Related works:
Journal Article: Bank Efficiency and Openness in Africa: Do Income Levels Matter? (2012)
Working Paper: Bank Efficiency and Openness in Africa: Do Income Levels Matter? (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:27011

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