WSEAS Transactions on Systems and Control
Print ISSN: 1991-8763, E-ISSN: 2224-2856
Volume 16, 2021
An Analysis of Bank Competiveness, Financial Intermediation and Entrepreneurship Development in African Economies
Authors: , , ,
Abstract: Given probable nexus between financial intermediation and entrepreneurship development, this paper uses multivariate regression techniques to test the impact of bank competitiveness on the nexus in forty-two African economies. With data obtained from the World Development Indicators, the results reveal that lending rates, the proxy for financial intermediation positively impacts business start-up-cost, the proxy for entrepreneurship, while bank competitiveness negatively impacts business start-up-cost, which suggests that banking competitiveness has the capacity to improve entrepreneurship in African economies. The region’s economies should reduce monetary base rates to single digit; advanced liberalization of the financial industry; encourage stronger competition through digital finance; lessen the requirements for new conventional bank entry; provide fiscal support for increased bank branching
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Keywords: Entrepreneurship, Financial intermediation, Bank competitiveness, financial liberalization
Pages: 469-478
DOI: 10.37394/23203.2021.16.42