Competition in African Banking: Do Globalization and Institutional Quality Matter?
31 Pages Posted: 22 Feb 2014
Date Written: February 20, 2014
Using a sample of 330 banks in 29 African countries, this paper investigates the importance of globalization and institutional quality for bank competition. The results suggest that competition increased in the period of 2002-2005, before decreasing somewhat between 2006 and 2007 and increasing again thereafter. Globalisation enhances bank competition in African countries with stronger governance structures and institutional quality.
Keywords: Africa, Banks, Boone Indicator, Competition, Developing countries, Globalization, Institutional Quality
JEL Classification: G21, L11, L80, O16, N27
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