The effect of banking market structure on the volatility of growth of manufacturing sectors in developing countries
AbstractI explore the effect of banking concentration and banking competition on the volatility of the growth of value added of manufacturing sectors in the developing countries. In this paper, I bring together two strands of literature, one that discusses the effect of financial intermediation on volatility of growth and another one that discusses the effect of banking concentration and competition on credit access. Following the industrial organization literature, I look at the effect of banking competition and banking concentration on the volatility of manufacturing sectors separately. I find that banking concentration has a dampening effect on the volatility of growth of the industries. On the other hand, I find that as banking competition increases, the volatility of the growth of industries increases, also. Copyright Springer Science+Business Media, LLC 2013
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Bibliographic InfoArticle provided by Springer in its journal Journal of Economics and Finance.
Volume (Year): 37 (2013)
Issue (Month): 4 (October)
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Web page: http://link.springer.de/link/service/journals/120857/index.htm
Find related papers by JEL classification:
- D4 - Microeconomics - - Market Structure and Pricing
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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