Simplice A, Asongu (2010): Bank efficiency and openness in Africa: do income levels matter? Forthcoming in:
Download (141kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Bank efficiency and openness in Africa: do income levels matter?|
|Keywords:||Bank efficiency, Openness, Panel, Africa|
|Subjects:||F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
D - Microeconomics > D6 - Welfare Economics
F - International Economics > F3 - International Finance
|Depositing User:||Simplice Anutechia Asongu|
|Date Deposited:||27. Nov 2010 23:50|
|Last Modified:||30. Dec 2015 22:50|
Al-Obaidan, A, M., (2008), “Efficiency Effect of Openness in the Banking Industry of Emerging Markets”, International Research Journal of Finance and Economics, 17, pp.92-104.
Asongu, S.A., (2010b), “Linkages between Financial Development and Openness: panel evidence from developing countries”, MPRA Paper No 26926.
Baltagi, B.H., Demetriades, P.O., and Law, S.H.,(2009), “Financial Development and Openness: evidence from panel data”, Journal of Development Economics, 89(2), pp.285-296.
Demirguc-Kunt, A., Beck, T., & Levine, R., (1999), “A New Database on Financial Development and Structure”, International Monetary Fund, WP 2146.
Demirguc-Kunt, A., & Beck, T., May (2009), “Financial Institutions and Markets Across Countries over time: Data and Analysis”, World Bank Policy Research Working Paper No. 4943.
Gries, T., Kraft, M., & Meierrieks, D., (2009), “Linkages between financial deepening, trade openness, and economic development: causality evidence from Sub-Saharan Africa”, World Development, 37(12), pp. 1849-1860.
Hanh, P. T. H., (2010), “Financial Development, Financial Openness and Trade Openness: New evidence”, CARE – EMR, University of Rouen, France.
Im, K.S., Pesaran, M.H., & Shin, Y., (2003), “Testing for unit roots in heterogeneous panels”, Journal of Econometrics, 115, pp.53-74.
Khim, V., & Liew, S., (2004), “Which lag selection criteria should we employ?”, Economics Bulletin, 3(33), pp.1-9.
Kim, D., Lin, S., & Suen, Y., (2010), “ Dynamic effects of trade openness on financial development”, Economic Modelling, 27, pp. 254-261.
Lane, P.R., Milesi-Ferretti, G.M., (2006), “The external wealth of nations Mark II: revised and extended estimates of foreign assets and liabilities 1970–2004”, IMF Working Paper 06/69.
Levin, A., Lin, C.F., and Chu, C.S., (2002), “Unit root tests in panel data: asymptotic and finite-sample properties”, Journal of Econometrics, 108,pp. 1-24.
Sathye, M.,(2003), “Efficiency of banks in the developing economy: The case of India”, European Journal of Operational Research, 148, pp. 662-671.
Staub, R. B., Souza, G., and Tabak, B.M., (2010), “Evolution of bank efficiency in Brazil: A DEA approach”, European Journal of Operational Research, 202, pp.204-213.
Rajan, R.G., & Zingales, L., (2003), “ The great reversals: the politics of financial development in the twentieth century”,Journal of Financial Economics, 69,pp.5–50.
Available Versions of this Item
- Bank efficiency and openness in Africa: do income levels matter? (deposited 27. Nov 2010 23:50) [Currently Displayed]