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 language | English |
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Pages (from-to) | 181-195 |
Number of pages | 15 |
Journal | Research in International Business and Finance |
Volume | 26 |
Issue number | 2 |
DOIs | |
Publication status | Published - May 2012 |
Keywords
- Banking
- Bootstrap DEA
- Convergence
- Efficiency
- GCC integration
ASJC Scopus subject areas
- Business, Management and Accounting (miscellaneous)
- Finance