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Title: The impact of the World Trade Organisation on Libyan banking sector
Author: Abida, Saleh Rajab
ISNI:       0000 0004 2701 1711
Awarding Body: Liverpool John Moores University
Current Institution: Liverpool John Moores University
Date of Award: 2011
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The main aim of this study is to identify and analyse, both qualitatively and quantitatively, the potential effects of the World Trade Organization (WTO) on the Libyan Banking sector using DEA and Panel data regression methods. Libya has not gained its full membership of the WTO yet. However, Libya has gained observer status since 2004. Since Libya has not yet joined the WTO, it is not possible to know its impact by addressing the period pre and post joining the WTO. Therefore, to know the final expected impact of the WTO on the Libyan banking sector, two ways are selected. The first one is by assessing the rules of the WTO and review the existing literature regarding the impact of the WTO on banking sector to draw some conclusions on the Libyan banking sector. The other one is by using the efficiency of banks as a means to know the impact of the WTO on the Libyan banking sector. The efficiency was empirically measured using DEA method and two types of comparison: Common Efficient Frontier (CEF) and National Specific Frontier (NSF). The using of DEA method allows the comparison of efficiency of Libyan banks to those in existence in countries similar to Libya (Gulf countries) that have already gained membership of the WTO .Also, to check whether there have been any changes in the general trend of efficiency since these countries have joined the WTO. Finally, in order to find out how to improve the bank efficiency, the determinants of bank efficiency were investigated using panel data regression and the WTO was used as one of the determinants of bank efficiency. The main finding from a sample inclusive of GCCs banks with Iwithout Libyan banks under CEF comparison, reveal that the mean efficiency score of the Libyan banking industry is not dissimilar to the GCC country's mean. Since these results are different to those obtained in the existing literature and also to know the implication of WTO on GCC countries as more homogeneous countries, the analysis was repeated without Libya using the CEF comparison. However, the type of comparison (NSF) produced significantly different results, in particular the ranking of the countries. Overall, The results of DEA which were supported and complemented by using the Panel data regression method show that there is no clear evidence that the efficiency of Gulf countries has been improving since joining of the WTO. The reason behind this might be the decreasing level of efficiency in these countries relative to developed countries When the Gulf countries joined the WTO. Furthermore, the Gulf countries have not yet completely opened their banking sectors and still discriminate against foreign banks. Also, they still enjoy the exemption given to developing countries. Therefore, Libya's joining the WTO as a full member- at the present time -might affect the banking sector negatively. Regarding to the impact of banking reform on Libyan banks efficiency, although the results were ambiguous and depending on using CEF or NSF type, the results of NSF which is supported by previous literature showed that there was progress, therefore, efficiency was improved after the reform had started.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
Keywords: HF Commerce ; HG Finance ; HJ Public Finance