Advanced Search
MyIDEAS: Login to save this paper or follow this series

Productivity and Income-Redistribution Impacts of Banking Liberalisation in Europe - An Empirical Analysis Based on the Melitz Model\par

Contents:

Author Info

Registered author(s):

    Abstract

    This paper tests empirically several assumptions and predictions of the Melitz (2003) and Baldwin and Forslid (2004) heterogeneous firm framework. The focus is on liberalisation-induced productivity and profitability consequences for international and regional banks in seven European countries during the 1988 to 2003 period. Confirming higher productivity and profitability for international banks throughout the investigated period, the panel data analysis also establishes a positive link between higher international market participation and bank productivity. It also provides evidence for an increase in aggregate banking productivity that can be attributed to banking liberalisation. On the other hand, our results do neither detect a narrowing of the productivity gap nor a widening of the profitability gap between international and regional banks. This can be accounted for by the particular regulatory environment of the banking sector as well as the deregulatory nature of banking liberalisation only affecting fixed trade costs but not variable trade costs.\par

    Download Info

    If 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.
    File URL: http://repec.graduateinstitute.ch/pdfs/Working_papers/HEIWP14-2006.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Economics Section, The Graduate Institute of International Studies in its series IHEID Working Papers with number 14-2006.

    as in new window
    Length: 41 pages
    Date of creation: 09 Jul 2006
    Date of revision:
    Handle: RePEc:gii:giihei:heiwp14-2006

    Contact details of provider:
    Postal: P.O. Box 36, 1211 Geneva 21
    Phone: ++41 22 731 17 30
    Fax: ++41 22 738 43 06
    Email:
    Web page: http://www.graduateinstitute.ch/economics
    More information through EDIRC

    Related research

    Keywords: Banking liberalisation; deregulation; firm heterogeneity; firm performance; productivity; first and second banking directives\par;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2003. "Falling Trade Costs, Heterogeneous Firms, and Industry Dynamics," Working Paper Series WP03-4, Peterson Institute for International Economics.
    2. Hopenhayn, Hugo A, 1992. "Entry, Exit, and Firm Dynamics in Long Run Equilibrium," Econometrica, Econometric Society, vol. 60(5), pages 1127-50, September.
    3. Mahmut Yasar & Carl H. Nelson & Roderick Rejesus, 2003. "Productivity and Exporting Status of Manufacturing Firms: Evidence from Quantile Regressions," Emory Economics 0323, Department of Economics, Emory University (Atlanta).
    4. Hopenhayn, Hugo A., 1992. "Exit, selection, and the value of firms," Journal of Economic Dynamics and Control, Elsevier, vol. 16(3-4), pages 621-653.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:gii:giihei:heiwp14-2006. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johannes Eugster).

    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.