Table 13 Efficiency Conditional β-convergence of Pakistan’s Banking Industry during 2006–2020.
(1) | (2) | (3) | (4) | Decision | ||
|---|---|---|---|---|---|---|
Hypothesis | Variables | \(\Delta {\rm{Ln}}{{\rm{Eff}}}_{{\rm{i}},{\rm{t}}}\) | \(\Delta {\rm{Ln}}{{\rm{Eff}}}_{{\rm{i}},{\rm{t}}}\) | \(\Delta {\rm{Ln}}{{\rm{Eff}}}_{{\rm{i}},{\rm{t}}}\) | \(\Delta {\rm{Ln}}{{\rm{Eff}}}_{{\rm{i}},{\rm{t}}}\) | Two-step DPDSYS-GMM |
\(\Delta {\rm{Ln}}{{\rm{Eff}}}_{{\rm{i}},{\rm{t}}-1}\) | 0.0586 (0.0590) | 0.0598 (0.0587) | 0.0507 (0.0630) | 0.0540 (0.0612) | ||
H5a | \({\rm{Ln}}{{\rm{Eff}}}_{{\rm{i}},{\rm{t}}-1}\) | −0.8169*** (0.1224) | −0.8290*** (0.1254) | −0.8111*** (0.1310) | −0.8045*** (0.1256) | Accepted |
Bank-Specific Digitalisation Factor | ||||||
H5d | DIG INDEX | 0.0118** (0.0052) | 0.0117** (0.0053) | 0.0123** (0.0055) | 0.0121** (0.0054) | Accepted |
Country-Specific Digitalisation Factors | ||||||
H5e | DICTA Index | −0.0179 (0.0261) | −0.0526** (0.0233) | −0.0180 (0.0265) | −0.0251 (0.0259) | Rejected |
DICTA Index*SCBs | −0.0478** (0.0172) | |||||
DICTA Index*PSBs | 0495** (0.0204) | |||||
DICTA Index*SPBs | −0.0419 (0.0397) | |||||
DICTA Index*FBs | −0.0038 (0.0165) | |||||
H5f | DICTU Index | 0.0203* (0.0109) | 0.0212* (0.0110) | 0.0215** (0.0108) | 0.0202* (0.0109) | Accepted |
Bank-Specific Control Factors | ||||||
lnCIR | −0.0848** (0.0388) | −0.0885** (0.0387) | −0.0909** (0.0403) | −0.0838** (0.0389) | ||
SIZE | 0.0615** (0.0218) | 0.0602** (0.0208) | 0.0594** (0.0217) | 0.0591** (0.0222) | ||
LGR | 0.0002** (8.32e5) | 0.0002** (9.39e5) | 0.0002** (8.96e5) | 0.0002** 8.42e5 | ||
LLPTNPL | 0.0006** (0.0002) | 0.0006** (0.0002) | 0.0006** (0.0002) | 0.0006** (0.0002) | ||
NPLTTL | 0.0004 (0.0002) | 0.0002 (0.0003) | 0.0002 (0.0003) | 0.0004** (0.0003) | ||
lnHR | −0.0081 (0.0187) | −0.0059 (0.0185) | −0.0076 (0.0181) | −0.0071 (0.0188) | ||
Macroeconomic Control Factors | ||||||
M2_GR | 0.0039* (0.0022) | 0.0039* (0.0022) | 0.0039* (0.0022) | 0.0039* (0.0022) | ||
INFRATE | −0.0015 (0.0031) | −0.0013 (0.0032) | −0.0014 (0.0033) | −0.0016 (0.0031) | ||
GDPGR | 0.0096** (0.0033) | 0.0093** (0.0034) | 0.0092** (0.0034) | 0.0095** (0.0033) | ||
\({\rm{YEA}}{{\rm{R}}}_{{\rm{DUMMIES}}}\) | YES | YES | YES | YES | ||
Constant | −1.0920** (0.3985) | −1.0700** (0.3913) | −1.0226** (0.4155) | −1.0562** (0.4164) | ||
Arellano-Bond AR(1) Test in first differences | −3.70 | −3.73 | −3.60 | −3.63 | ||
Pr > z | 0.000 | 0.000 | 0.000 | 0.000 | ||
Arellano-Bond AR(2) Test in first differences | 1.61 | 1.54 | 1.44 | 1.56 | ||
Pr > z | 0.108 | 0.123 | 0.151 | 0.118 | ||
Sargan Test of Overid. Restrictions | 2.94 | 3.32 | 4.02 | 3.27 | ||
Prob > \({\chi }^{2}\) | 0.401 | 0.346 | 0.260 | 0.351 | ||
Hansen Test of Overid. Restrictions | 1.64 | 1.87 | 2.09 | 1.77 | ||
Prob > \({\chi }^{2}\) | 0.651 | 0.600 | 0.554 | 0.622 | ||
Wald \({\chi }^{2}\) | 1508.68*** | 1194.41*** | 760.60*** | 2293.79*** | ||
No. of Instruments | 26 | 26 | 26 | 26 | ||
No. of Banks | 29 | 29 | 29 | 29 | ||
No. of observations | 377 | 377 | 377 | 377 | ||
