Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123614 
Year of Publication: 
2014
Series/Report no.: 
AGDI Working Paper No. WP/14/004
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
This chapter complements exiting African liberalization literature by providing fresh patterns of two main areas. First, it assesses whether African banking institutions have benefited from liberalization policies in terms of bank returns. Second, it models bank return and return uncertainty in the context of openness policies to examine fresh patterns for the feasibility of common policy initiatives. The empirical evidence is based on 28 African countries for the period 1999-2010. Varying non-overlapping intervals and autoregressive orders are employed for robustness purposes. The findings show that, while trade openness has increased bank returns and return uncertainties, financial openness and institutional liberalization have decreased bank returns and reduced return uncertainty respectively. But for some scanty evidence of convergence in return on equity, there is overwhelming absence of catch-up among sampled countries. Implications for regional integration and portfolio diversification are discussed.
Subjects: 
Liberalization policies
Capital return
Africa
JEL: 
D6
F30
F41
F50
O55
Document Type: 
Working Paper

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