期刊名称:Journal of Statistical and Econometric Methods
印刷版ISSN:2241-0384
电子版ISSN:2241-0376
出版年度:2019
卷号:8
期号:4
页码:51-77
语种:English
出版社:Scienpress Ltd
摘要:Banks play a pivotal role in the financial sector, especiallyin least developed countries where financial markets are small. In recentyears, the banking sector of Bangladesh has been beset with problems, such asnumerous financial scams and high volume of non-performing loans. Since theexisting literature does not address this issue, it is hitherto unclear as towhat impact governance may have on the competitiveness of the banking sector.This paper aims to fill in this research gap by investigating the relationshipbetween governance and competitiveness, in the context of the banking sector ofBangladesh. Based on time series data from 1996 to 2016, the techniques ofseemingly unrelated regression and three stage least squares are utilized toexamine the effect of governance on competitiveness. The results of this studyshow that improved governance, in the form of better voice and accountability,political stability, regulatory quality, government effectiveness, rule of law,and control over corruption, tend to improve competitiveness in the bankingsector, as measured by the Lerner index. These findings imply that goodgovernance is conducive to improving the competitiveness of the banking sector.Policies concerning the sector must prioritize governance in order to havefavourable outcomes.