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Cost and profit efficiency of banks in Haiti: do domestic banks perform better than foreign banks?

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  • Raulin Lincifort Cadet

    (Université Quisqueya)

Abstract

This paper is, to my knowledge, the first to estimate a stochastic frontier model in which foreign bank ownership interacts with both the frontier and the inefficiency effects. Few studies in this field have focused on countries with a low income level, such as some African and Caribbean nations. This paper considers the case of Haiti, which is an excellent example of a developing economy with a low income level. The results reveal that foreign banks significantly impact both the frontier and the inefficiency effects. Although they enjoy technological progress, compared with domestic banks, foreign banks are less profit efficient.
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Suggested Citation

  • Raulin Lincifort Cadet, 2015. "Cost and profit efficiency of banks in Haiti: do domestic banks perform better than foreign banks?," Post-Print hal-01815333, HAL.
    • Handle: RePEc:hal:journl:hal-01815333
    DOI: 10.1504/IJBAAF.2015.070507
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    Cited by:

    1. Fontin, Jean-Raymond & Lin, Shi-Woei, 2019. "Comparison of banking innovation in low-income countries: A meta-frontier approach," Journal of Business Research, Elsevier, vol. 97(C), pages 198-207.

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    More about this item

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean

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