Financial Sector Competition, Services Trade, and Growth
AbstractWe explore dynamic linkages between financial/banking sector openness, financial sector competition, and growth. We first develop an analytical model, highlighting links between long-run economic performance and the services trade, through scale economies and market and cost structures in the financial services sector. This is followed by an econometric exercise based on data for 130 countries for the 1990s. Our results point to a strong positive relationship between financial sector competition/performance and financial sector openness (meaning foreign bank access to domestic markets), and between growth and financial sector competition/performance. They also point to the presence of scale economies in the sector.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3573.
Date of creation: Oct 2002
Date of revision:
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Other versions of this item:
- Joseph F. Francois & Felix Eschenbach, 2002. "Financial Sector Competition, Service Trade, and Growth," Tinbergen Institute Discussion Papers 02-089/2, Tinbergen Institute.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-14 (All new papers)
- NEP-CFN-2003-03-14 (Corporate Finance)
- NEP-DEV-2003-03-14 (Development)
- NEP-MFD-2003-03-14 (Microfinance)
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