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Dynamics and Drivers of Competition in the Ghanaian Banking Industry

Author

Listed:
  • Richard Oduro

    (University of Education)

  • Francis Kwaw Andoh

    (University of Cape Coast)

  • Samuel Gameli Gadzo

    (University of Education)

Abstract

This study examines the nature and the change in the level of competition in the various financial sub-markets in Ghana, a lower middle-income country and one of Africa’s emerging economies. We apply the recently developed Boone indicator on annual bank-level data of 22 banks from 2011 to 2020. We find the loan market to be the most competitive compared to the asset market and the fee-based services market. Over time, the nature of competition tends to change from being oligopolistic towards a more monopolistic structure. We find bank size and foreign ownership to contribute to the observed market power and the dynamics of the competition in the Ghanaian banking sector.

Suggested Citation

  • Richard Oduro & Francis Kwaw Andoh & Samuel Gameli Gadzo, 2022. "Dynamics and Drivers of Competition in the Ghanaian Banking Industry," International Journal of Global Business and Competitiveness, Springer, vol. 17(2), pages 175-191, December.
    • Handle: RePEc:spr:ijogbc:v:17:y:2022:i:2:d:10.1007_s42943-022-00046-y
    DOI: 10.1007/s42943-022-00046-y
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    More about this item

    Keywords

    Financial markets; Banks; Competition; Concentration; Business economics;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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