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Banking competition in Africa: Subregional comparative studies

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  • Fosu, Samuel

Abstract

This paper examines the extent of banking competition in African subregional markets. A dynamic version of the Panzar–Rosse model is adopted beside the static model to assess the overall extent of banking competition in each subregional banking market over the period 2002 to 2009. Consistent with other emerging economies, the results suggest that African banks generally demonstrate monopolistic competitive behaviour. Although the evidence suggests that the static Panzar–Rosse H-statistic is downwards biased compared to the dynamic version, the competitive nature identified remains robust to alternative estimators.

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  • Fosu, Samuel, 2013. "Banking competition in Africa: Subregional comparative studies," Emerging Markets Review, Elsevier, vol. 15(C), pages 233-254.
    • Handle: RePEc:eee:ememar:v:15:y:2013:i:c:p:233-254
    DOI: 10.1016/j.ememar.2013.02.001
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    Cited by:

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    9. Matabaro Borauzima, Luc & Niyondiko, Dominique & Muller, Aline, 2021. "Does cross-border banking enhance competition and cost efficiency? Evidence from Africa," Journal of Multinational Financial Management, Elsevier, vol. 62(C).
    10. Egbendewe, Aklesso Y.G. & Oloufade, Djoulassi K., 2020. "Good institutions and banking sector competitiveness: A semi-parametric evidence," Finance Research Letters, Elsevier, vol. 36(C).
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    13. Memić Deni, 2015. "Banking Competition and Efficiency: Empirical Analysis on the Bosnia and Herzegovina Using Panzar-Rosse Model," Business Systems Research, Sciendo, vol. 6(1), pages 72-92, March.
    14. Anh L.N. Ngo, 2019. "Index of Financial Inclusion and the Determinants: An Investigation in Asia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(12), pages 1368-1382, December.
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    More about this item

    Keywords

    Market structure; African banking; Competition; Panzar–Rosse model;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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