Publication date: Available online 25 October 2019
Source: Finance Research Letters
Author(s): Aklesso Y.G. Egbendewe, Djoulassi K. Oloufade
Abstract
This research examines the role of institutionsâ quality in the competitiveness of the banking sector in developing countries. Hence, semi-parametric regression models are used with bank level detailed panel data from 2000 to 2014 drawn from the West African Economic and Monetary Union (WAEMU) countries. The results suggest that, depending on the types of institutional variables used to condition the proposed dynamic Panzar-Rosse H-statistics, some institutionsâ quality variables such as corruption control, government effectiveness, and the rule of law display U-shaped relationships. Efforts in institutionsâ quality improvement above certain estimated thresholds are required to enhance banking market competitiveness