Efficiency and Competitiveness of the Equatorial Guinean Financial Sector
The private sector, in order to function properly, needs financing from the national financial sector, and so the efficiency and competitiveness of said financial sector arouse the interest of many researchers, who perform analyses in order to provide authorities and decision makers with relevant in...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-01-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/11/1/241 |
| _version_ | 1827617358239236096 |
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| author | Tito Ondo Ela-Medja Pilar Alberca |
| author_facet | Tito Ondo Ela-Medja Pilar Alberca |
| author_sort | Tito Ondo Ela-Medja |
| collection | DOAJ |
| description | The private sector, in order to function properly, needs financing from the national financial sector, and so the efficiency and competitiveness of said financial sector arouse the interest of many researchers, who perform analyses in order to provide authorities and decision makers with relevant information for the decision-making process and the design of their financial policies. This study contributes to this line of research, analyzing both technical and economic efficiency (allocative and cost efficiency) in the financial sector, focusing on banks, using a sample of Equatorial Guinean firms during the period of 2013–2019. Furthermore, the competitiveness of the financial sector is also analyzed. Knowing how efficient and competitive the financial sector is could answer many of the questions that arise when regulating the national business sector. To carry out this analysis, parametric approaches such as stochastic frontiers and non-parametric techniques such as data envelopment analysis are used, as well as different competitiveness indicators (Boone, Panzar–Rosse). During the research, it is found that the banking sector, which represents the financial sector of the country, operates with low levels of technical efficiency: the Cobb–Douglas production function and the trans-logarithmic production function showed similar average efficiency results. Regarding competitiveness, the financial sector operates under monopolistic competition. Therefore, much remains to be achieved to improve the efficiency and competitiveness of the financial sector for the development of Equatorial Guinea. It is the responsibility of economic agents to provide a good business climate in the country and guarantee perfect competition in the financial market to promote national development. |
| first_indexed | 2024-03-09T09:44:46Z |
| format | Article |
| id | doaj.art-79f2b080011a4cf38fb700be7bda3fba |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-09T09:44:46Z |
| publishDate | 2023-01-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-79f2b080011a4cf38fb700be7bda3fba2023-12-02T00:39:55ZengMDPI AGMathematics2227-73902023-01-0111124110.3390/math11010241Efficiency and Competitiveness of the Equatorial Guinean Financial SectorTito Ondo Ela-Medja0Pilar Alberca1Faculty of Economics and Business Administration, Department of Business and Accounting, Universidad Nacional de Educación a Distancia (UNED), Paseo Senda del Rey, 11, 28040 Madrid, SpainFaculty of Economics and Business Administration, Department of Business and Accounting, Universidad Nacional de Educación a Distancia (UNED), Paseo Senda del Rey, 11, 28040 Madrid, SpainThe private sector, in order to function properly, needs financing from the national financial sector, and so the efficiency and competitiveness of said financial sector arouse the interest of many researchers, who perform analyses in order to provide authorities and decision makers with relevant information for the decision-making process and the design of their financial policies. This study contributes to this line of research, analyzing both technical and economic efficiency (allocative and cost efficiency) in the financial sector, focusing on banks, using a sample of Equatorial Guinean firms during the period of 2013–2019. Furthermore, the competitiveness of the financial sector is also analyzed. Knowing how efficient and competitive the financial sector is could answer many of the questions that arise when regulating the national business sector. To carry out this analysis, parametric approaches such as stochastic frontiers and non-parametric techniques such as data envelopment analysis are used, as well as different competitiveness indicators (Boone, Panzar–Rosse). During the research, it is found that the banking sector, which represents the financial sector of the country, operates with low levels of technical efficiency: the Cobb–Douglas production function and the trans-logarithmic production function showed similar average efficiency results. Regarding competitiveness, the financial sector operates under monopolistic competition. Therefore, much remains to be achieved to improve the efficiency and competitiveness of the financial sector for the development of Equatorial Guinea. It is the responsibility of economic agents to provide a good business climate in the country and guarantee perfect competition in the financial market to promote national development.https://www.mdpi.com/2227-7390/11/1/241competitiveness and efficiencyfinancial sectorfrontier methodologiesstochastic frontier approachdata envelopment analysisBoone indicator |
| spellingShingle | Tito Ondo Ela-Medja Pilar Alberca Efficiency and Competitiveness of the Equatorial Guinean Financial Sector Mathematics competitiveness and efficiency financial sector frontier methodologies stochastic frontier approach data envelopment analysis Boone indicator |
| title | Efficiency and Competitiveness of the Equatorial Guinean Financial Sector |
| title_full | Efficiency and Competitiveness of the Equatorial Guinean Financial Sector |
| title_fullStr | Efficiency and Competitiveness of the Equatorial Guinean Financial Sector |
| title_full_unstemmed | Efficiency and Competitiveness of the Equatorial Guinean Financial Sector |
| title_short | Efficiency and Competitiveness of the Equatorial Guinean Financial Sector |
| title_sort | efficiency and competitiveness of the equatorial guinean financial sector |
| topic | competitiveness and efficiency financial sector frontier methodologies stochastic frontier approach data envelopment analysis Boone indicator |
| url | https://www.mdpi.com/2227-7390/11/1/241 |
| work_keys_str_mv | AT titoondoelamedja efficiencyandcompetitivenessoftheequatorialguineanfinancialsector AT pilaralberca efficiencyandcompetitivenessoftheequatorialguineanfinancialsector |