Financial integration of GCC banking markets: A non-parametric bootstrap DEA estimation approach

Aktham I. Maghyereh, Basel Awartani

    Research output: Contribution to journalArticlepeer-review

    29 Citations (Scopus)

    Abstract

    In this paper, we investigate banking sector integration in the Gulf Cooperation Council during the period 1998-2009. The integration inference was derived by testing the convergence of cost efficiency scores. These efficiencies were measured using a smoothed bootstrap procedure that ensures consistency and unbiasedness. The convergence was examined using two tests: a beta convergence test and a sigma convergence test. The two tests show significant convergence, particularly during the transitional period 2003-2009, that witnessed substantial reforms. Therefore, we conclude that integration and harmonization measures taken by the Gulf Cooperation Council Governments have had a significant impact on efficiency and homogeneity of these countries' banking markets.

    Original languageEnglish
    Pages (from-to)181-195
    Number of pages15
    JournalResearch in International Business and Finance
    Volume26
    Issue number2
    DOIs
    Publication statusPublished - May 2012

    Keywords

    • Banking
    • Bootstrap DEA
    • Convergence
    • Efficiency
    • GCC integration

    ASJC Scopus subject areas

    • Business, Management and Accounting (miscellaneous)
    • Finance

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