How institutions and regulation shape the influence of bank concentration on economic growth: International evidence

Fernández, Ana Isabel; González, Francisco; Suárez, Nuria

doi:10.1016/j.irle.2009.09.001

Cited by 44 publications

(32 citation statements)

References 31 publications

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“…However, my study reveals that law is less important for economic growth. The insignificant effect of law on growth is in contrast to positive and significant effects reported by Easterly [19], Kaufmann et al [35], Fernandez et al [26], Kaufmann et al [36] and Busse and Groizard [6]. Similar to the corruption measure of governance, our results in the case of law are not robust to cluster analysis.…”

Section: Multiple Meta-regression Analysiscontrasting

confidence: 99%

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Yerrabati¹,

Hawkes²

2015

aeb

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With economists and policy makers recognising the role of governance for growth, recent research focus is on governance and its impact on growth. However, with ever growing number of studies using different methodologies, data sources and country groupings, a high amount of heterogeneity is created among reported results. This has left both policy makers and researchers having different views on the importance of governance for growth. This paper has meta-synthesised the empirical evidence on governance and growth in South and East Asia Pacific countries based on 29 studies with 554 estimates from 1980 -2012. The empirical results show that while corruption is significantly and negatively correlated with growth, government effectiveness and regulation are positively and significantly correlated. Political stability and law have no important effect on economic growth. We conclude that empirical research literature on governance and growth has failed to provide evidence of a true effect of voice and accountability on growth. Finally, overall governance is important for growth. Our results have important policy implications.

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Section: Multiple Meta-regression Analysiscontrasting

confidence: 99%

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Yerrabati¹,

Hawkes²

2015

aeb

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“…The results are consistent with the previous literature, showing financial liberalization positively affects the efficiency and productivity of an industry as it reduces the regulatory cost imposed upon market participants. The positive coefficients of bank reforms confirm the importance of a well-developed institutional environment for economic growth as suggested by, among others, La Porta et al (1998), Demirg€ uc ß- Maksimovic (1998, 1999), Claessens and Laeven (2003), Fern andez et al (2010), and Chang and Lee (2012). This study further extends to the issue of bank competition, as suggested by Zhao et al (2010) who take India's banking industry as their sample.…”

Section: Empirical Results Of the Full Samplesupporting

confidence: 76%

Bank Reforms and Competition: New Global Evidence

Hsieh

2014

Asia-Pac J of Fin Stud

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This study investigates the relationships between bank reforms and competition and sets up a large-scale sample covering 15 290 individual commercial banks from 90 countries. The empirical results of the full sample indicate that bank reforms, except for interest rate controls, increase competition significantly. To examine whether country heterogeneities influence the effects from bank reforms, we further divide countries into six groups: Advanced, Asia, Latin America, Middle East and North Africa (MENA), Sub-Saharan Africa (SSA), and Transition countries. Our results show that: (i) interest rate controls play an important role for Advanced countries; (ii) privatization is substantial for Transition countries, Asia, Latin America, and MENA; (iii) credit control is suitable for Asia; and (iv) removing entry barriers improves bank competition in MENA and SSA. Empirical results thus offer evidence that country characteristics do matter on the reform-competition nexus. Moreover, we also reveal that bank competition is enhanced through bank reforms, as well as financial and economic development variables. Hence, the government or authorities should take these influential factors into consideration when formulating relevant policies. These findings also provide important implications.

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“…By contrast, also using data on 41 industrial and developing countries from the 1980s and 1990s, Claessens and Laeven (2005) find no evidence that banking system concentration explains industrial sector growth. More in line with Cetorelli and Gambera (2001), Fernández et al (2010), who use data on 84 countries over 1980-2004, report that bank concentration generally had a negative effect on economic growth.…”

mentioning

confidence: 70%

Banking system concentration and unemployment in developing countries

Feldmann

2015

Journal of Economics and Business

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This paper studies the effect of banking system concentration on unemployment in developing countries. Using data on 42 developing countries, it finds that more concentration increased unemployment over the period 1987 to 2007. The magnitude of the effect is substantial. The result is robust to both endogeneity of the bank concentration variable and numerous variations in specification. It is important because many developing countries are characterized by high levels of both banking system concentration and unemployment.

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How institutions and regulation shape the influence of bank concentration on economic growth: International evidence

Cited by 44 publications

References 31 publications

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Economic Governance and Economic Growth in South and East Asia & Pacific Region: Evidence from Systematic Literature Reviews and Meta-analysis

Bank Reforms and Competition: New Global Evidence

Banking system concentration and unemployment in developing countries

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