Browsing by Author "Doku, J.N."

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Assessing Competitive Behaviour in Emerging Banking Market:
(2012) Doku, J.N.; Abor, J.; Adjasi, C.K.D.; Andoh, C.
Assessing competitive behaviour in emerging banking market: African evidence
(Research in Accounting in Emerging Economies, 2012-01) Doku, J.N.; Abor, J.; Adjasi, C.K.D.; Andoh, C.
Purpose - This paper investigates competitive bank behaviour in Africa for the period 1999-2008 and further examines the impact of institutional quality and political atmosphere on competitive bank behaviour. Design/methodology/ approach - This study used panel data methodology based on the Panzar-Rosse (1987) design. Findings - The findings of the study indicates that the nature of banking system in Africa can best be described as monopolistically competitive. Also, our findings endorse the importance of institutional quality and political stability in fostering competitive banking sector. In particular, the rule of law shows positive and significant relationship with competitive bank behaviour. Additionally, the quality of regulations suggests positive association with bank competitive behaviour. With respect to political environment, stable political atmosphere is conducive for promoting competitive banking sector. Improved regulatory quality coupled with reduced level of perception about corruption fosters competitive bank behaviour. Originality/value - This paper provides useful information relevant to policy makers in the banking sector about the nature of bank competitive behaviour in Africa and the drivers behind the competitive behaviour. Copyright © 2012 by Emerald Group Publishing Limited.
Banking Sector Development in Emerging Markets: A Review of Recent Development in Africa
(2013) Doku, J.N.; Abor, J.; Adjasi, C.K.D.; Andoh, C.
Key to the economic transformation of developing economies is the banking sector developments. The banking sector in Africa has witnessed a steady growth in its core functional areas over the recent decades. This growth has implications on access to finance and stability in the financial system. This study reviews banking sector performance, competition, access to finance and stability in the context of sub-regional and comparator regional analysis with the view to informing and shaping policy directions. The North African economies recorded high levels of financial deepening than the rest of the regions. With the same economic conditions like South Asia, East Asia Pacific and Latin America and Caribbean regions, African’s banking sector depth lags behind these regions. Access to financial institutions is high in Southern African region than the rest of the sub-regions. Again, Africa records very low level of banking sector accessibility compared to its comparator regions. Moreover, the banking system in Africa is characterized by high costs, inefficiency and high margins. The banking system also exhibit high concentration and market power and relative stability than comparator regions. The North African economies exhibit low presence of foreign banks than sub-regional groupings.
Financial inclusion and inclusive growth in Africa: What is the moderation role of financial stability?
(Cogent Economics & Finance, 2023) Iddrisu, K.; Abor, J.Y.; Doku, J.N.; Dziwornu, R.
This article aims to explore the interplay between financial stability, financial inclusion and inclusive growth in 40 African countries during the period 2004–2020. It acknowledges that an unstable financial system has the potential to erode confidence and hinder the essence of financial inclusion in promoting inclusive growth. However, studies regarding the combined effect of financial inclusion and financial stability on inclusive growth are hard to find, especially in Africa. By examining the effects of financial inclusion on inclusive growth and the synergistic relationship between financial stability and inclusive growth, this study seeks to shed light on how these factors interact in the context of African economies. To To cater for endogeneity issues, we used a two-step system-generalized method of moment. Our result reveals three outcomes: First, financial inclusion promotes inclusive growth. Second, financial stability alone is less effective at enhancing inclusive growth. Lastly, financial stability forms synergy with financial inclusion to further spike inclusive growth. It is recommended that policymakers strive to enhance financial inclusion by promoting financial stability.