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The spatial structure of the financial development in Brazil

Author

Listed:
  • Marco Crocco

    (Cedeplar-UFMG)

  • Fabiana Santos

    (Cedeplar-UFMG)

  • Pedro Amaral

    (Cedeplar-UFMG)

Abstract

This paper explores the financial development in Brazil. It focuses on the impacts of the development level of a municipality’s financial system over its neighborhood, under the light of the Central Place Theory. Using a GMM estimator for a spatial panel model with an endogenous spatial lag and spatial moving average errors we investigate the spatial structure of the financial system in Brazil. The results point to a negative spatial association between the Brazilian municipalities’ financial system, in the way that a municipality with more developed financial system tends to be surrounded by municipalities with less developed financial systems.

Suggested Citation

  • Marco Crocco & Fabiana Santos & Pedro Amaral, 2009. "The spatial structure of the financial development in Brazil," Textos para Discussão Cedeplar-UFMG td361, Cedeplar, Universidade Federal de Minas Gerais.
    • Handle: RePEc:cdp:texdis:td361
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    File URL: https://www.cedeplar.ufmg.br/pesquisas/td/TD%20361.pdf
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    Cited by:

    1. Edmund Amann & Werner Baer, 2012. "The Impact of Privatization on Brazil’s Regions," Chapters, in: Werner Baer (ed.), The Regional Impact of National Policies, chapter 6, Edward Elgar Publishing.
    2. Wicaksono, Ahmad Tibrizi Soni, 2022. "Islamic Bank Deposits during COVID-19 Pandemic: A Spatial Finance Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 56(1), pages 135-149.
    3. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
    4. Anderson Cavalcante & Renan P. Almeida & Nathaniel Baker, 2016. "The urban dynamics of financial services: centralities in the metropolis [A dinâmica urbana dos serviços financeiros: centralidades na metrópole]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 26(spe), pages 1245-1285, May.
    5. Pessoa, Filipe de Morais Cangussu & Braga, Marcelo José, 2019. "Economic growth and financial development in Brazil: a flexible regression model approach," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    6. Sandhya Garg & Samarth Gupta & Sushanta Mallick, 2023. "Does Social Identity Constrain Rural Entrepreneurship? The Role of Financial Inclusion," IEG Working Papers 460, Institute of Economic Growth.

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    More about this item

    Keywords

    financial development; spatial structure; bank strategy; Brazil;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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