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Banking Competition in Africa: Sub-regional Comparative Studies

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  • Samuel Fosu

Abstract

This paper examines the extent of banking competition in African sub-regional 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 sub-regional 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 downward biased compared to the dynamic version, the competitive nature identified remains robust to alternative estimators.

Suggested Citation

  • Samuel Fosu, 2013. "Banking Competition in Africa: Sub-regional Comparative Studies," Discussion Papers in Economics 13/12, Division of Economics, School of Business, University of Leicester, revised Jun 2013.
  • Handle: RePEc:lec:leecon:13/12
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    File URL: https://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp13-12.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Exchange Market Pressure; Currency Misalignment; Time-Varying-Coefficient;
    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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