Testing the relationship between competition and efficiency in banking: A panel data analysis
AbstractThe relationship between competition and efficiency in the banking sectors of five EU countries is investigated using Granger-type causality test estimations. We find positive causation between market power and efficiency, whereas the causality running from efficiency to competition is weak.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 105 (2009)
Issue (Month): 1 (October)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolet
Competition Efficiency Granger causality Banking;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- Arellano, Manuel & Bover, Olympia, 1995.
"Another look at the instrumental variable estimation of error-components models,"
Journal of Econometrics,
Elsevier, vol. 68(1), pages 29-51, July.
- M Arellano & O Bover, 1990. "Another Look at the Instrumental Variable Estimation of Error-Components Models," CEP Discussion Papers dp0007, Centre for Economic Performance, LSE.
- Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
- Nickell, Stephen & Nicolitsas, Daphne & Dryden, Neil, 1997.
"What makes firms perform well?,"
European Economic Review,
Elsevier, vol. 41(3-5), pages 783-796, April.
- Stijn Claessens & Luc Laeven, 2004.
"What drives bank competition? Some international evidence,"
Federal Reserve Bank of Cleveland, pages 563-592.
- Claessens, Stijn & Laeven, Luc, 2004. "What Drives Bank Competition? Some International Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(3), pages 563-83, June.
- Claessens, Stijn & Laeven, Luc, 2003. "What drives bank competition? some international evidence," Policy Research Working Paper Series 3113, The World Bank.
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Alin Marius Andrieş & Bogdan Căpraru, 2012. "Competition and efficiency in EU27 banking systems," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 12(1), pages 41-60, July.
- Fiordelisi, Franco & Molyneux, Phil, 2010. "The determinants of shareholder value in European banking," Journal of Banking & Finance, Elsevier, vol. 34(6), pages 1189-1200, June.
- Fiordelisi, Franco & Marques-Ibanez, David & Molyneux, Phil, 2011.
"Efficiency and risk in European banking,"
Journal of Banking & Finance,
Elsevier, vol. 35(5), pages 1315-1326, May.
- Joachim Wilde, 2012. "Effects of simultaneity on testing Granger-causality – a cautionary note about statistical problems and economic misinterpretations," Working Papers 93, Institute of Empirical Economic Research.
- Homma, Tetsushi & Tsutsui, Yoshiro & Uchida, Hirofumi, 2014.
"Firm growth and efficiency in the banking industry: A new test of the efficient structure hypothesis,"
Journal of Banking & Finance,
Elsevier, vol. 40(C), pages 143-153.
- HOMMA Tetsushi & TSUTSUI Yoshiro & UCHIDA Hirofumi, 2012. "Firm Growth and Efficiency in the Banking Industry: A new test of the efficient structure hypothesis," Discussion papers 12060, Research Institute of Economy, Trade and Industry (RIETI).
- Fungácová, Zuzana & Pessarossi , Pierre & Weill , Laurent, 2012.
"Is bank competition detrimental to efficiency? Evidence from China,"
BOFIT Discussion Papers
31/2012, Bank of Finland, Institute for Economies in Transition.
- Fungáčová, Zuzana & Pessarossi, Pierre & Weill, Laurent, 2013. "Is bank competition detrimental to efficiency? Evidence from China," China Economic Review, Elsevier, vol. 27(C), pages 121-134.
- Phil Molyneux & Hong Liu & John O.S. Wilson, 2010.
"Competition and Stability in European Banking: A Regional Analysis,"
10019, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
- Hong Liu & Phil Molyneux & John O. S. Wilson, 2013. "Competition And Stability In European Banking: A Regional Analysis," Manchester School, University of Manchester, vol. 81(2), pages 176-201, 03.
- Laura – Maria POPESCU & Ileana NISULEȘCU, 2013. "Mitigation In The Banking System In The Context Of Integration In The European Union," CrossCultural Management Journal, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 28, pages 117-121, August.
- Gómez-Gallego, Juan Cándido & Gómez-García, Juan & Pérez-Cárceles, María Concepción, 2012. "Appropriate Distribution of Cost Inefficiency Estimates as Predictor of Financial Instability /La distribución de la ineficiencia estimada como predictor de inestabilidad financiera," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 1071 (12 pa, Diciembre.
- Roman Horvath & Jakub Seidler & Laurent Weill, 2012.
"Banks' Capital and Liquidity Creation: Granger Causality Evidence,"
2012/05, Czech National Bank, Research Department.
- Horváth, Roman & Seidler, Jakub & Weill, Laurent, 2012. "Bank capital and liquidity creation: Granger-causality evidence," Working Paper Series 1497, European Central Bank.
- Roman Horváth & Jakub Seidler & Laurent Weill, 2012. "Bank Capital and Liquidity Creation : Granger Causality Evidence," Working Papers 318, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
- Dong, Xiao-yuan & Pandey, Manish, 2012. "Gender and labor retrenchment in Chinese state owned enterprises: Investigation using firm-level panel data," China Economic Review, Elsevier, vol. 23(2), pages 385-395.
- Benarroch, Michael & Pandey, Manish, 2012. "The relationship between trade openness and government size: Does disaggregating government expenditure matter?," Journal of Macroeconomics, Elsevier, vol. 34(1), pages 239-252.
- Benjamin Miranda Tabak & Guilherme Maia Rodrigues Gomes & Maurício da Silva Medeiros Júnior, 2012. "The Impact of Market Power at Bank Level in Risk-taking: the Brazilian case," Working Papers Series 283, Central Bank of Brazil, Research Department.
- Cipollini, Andrea & Fiordelisi, Franco, 2012. "Economic value, competition and financial distress in the European banking system," Journal of Banking & Finance, Elsevier, vol. 36(11), pages 3101-3109.
- Bonanno, Graziella, 2012.
"L’efficienza del sistema bancario italiano dal 2006 al 2010. Un’applicazione delle frontiere stocastiche
[The Efficiency of Italian Banking System over 2006-2010. An Application of the Stochast," MPRA Paper 42831, University Library of Munich, Germany.
- Sara G. Castellanos & Jesus G. Garza-Garcia, 2013. "Competition and Efficiency in the Mexican Banking Sector," Working Papers 1329, BBVA Bank, Economic Research Department.
- Franco Fiordelisi & David Marques & Phil Molyneux, 2009. "Efficiency and Risk-Taking in European Banking," Working Papers 09004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.