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Deregulation, Bank Competition and Regional Growth

Listed author(s):
  • Santiago Carbo Valverdie
  • David Humphrey
  • Francisco Rodriguez Fernandez

C ARBo V ALVERDE S., H UMPHREY D. B. and R ODRiGUEZ F ERNaNDEZ F. (2003) Deregulation, bank competition and regional growth, Reg. Studies 37 , 227-237. Cross-country studies suggest that countries with greater financial sector competition have higher rates of economic growth. However, it is difficult to "hold constant' different legal and cultural environments in these analyses, leading some to suggest that this relationship is due less to competition than to differing legal and cultural conditions which favour economic growth. As these differences are small within a country, an interregional analysis may reflect better the relationship between financial market competition and growth. We study five large regions in Spain over 1986-98. Using different indicators of market competition, we analyse changes in regional competition and growth. Granger-causality tests show that differences in competition are not associated with improved regional growth. Although deregulation raised deposit rates and lowered loan rates, these benefits have not markedly influenced regional growth. The positive relationship shown between competitive markets and growth in cross- country studies may instead be due to some unspecified third factor that influences both. C ARBo V ALVERDE S., H UMPHREY D. B. et R ODRi GUEZ F ERNaNDEZ F. (2003) La dereglementation, la concurrence interbancaire et la croissance regionale, Reg. Studies 37 , 227-237. Des etudes internationales laissent supposer que les pays ou la concurrence interbancaire s'avere la plus vive jouissent des taux de croissance economique plus eleves. Cependant, il est difficile de maintenir divers milieux juridiques et culturels comme "facteurs constants' dans une telle analyse, ce qui incite certains a laisser supposer que ce rapport se doit moins a la concurrence qu'a des conditions juridiques et culturelles differentes et qui sont propices a la croissance economique. Etant donne que ces differences s'averent peu importantes au sein d'un pays, il se peut qu' une analyse menee sur le plan interregional puisse mieux refle ter le rapport entre la concurrence interbancaire et la croissance. Cinq grandes regions espagnoles sont etudiees entre 1986 et 1998. A partir des differents indicateurs de la concurrence du marche, on analyse la variation de la concurrence regionale et la croissance. Des tests de causalite du type Granger montrent que les differences de concurrence ne sont pas liees a une amelioration de la croissance re gionale. Bien que la dereglementation ait fait augmenter les taux d'interet des depots bancaires et diminuer ceux des emprunts bancaires, ces avantages n'ont pas sensiblement influe sur la croissance regionale. Dans les etudes internationales, il se peut que le rapport etroit entre les marches concurrentiels et la croissance s' explique plutot par quelque troisieme facteur non specifie qui influe sur ces deux derniers. C ARBo V ALVERDE S., H UMPHREY D. B. und R ODRiGUEZ F ERNaNDEZ F. (2003) Wettbewerbsfreiheit, Wettbewerb im Bankwesen und regionales Wachstum, Reg. Studies 37 , 227-237. "Querlandein' durchgefuhrte Untersuchungen lassen vermuten, dass Lander mit scharferem Wettbewerb im Finanzsektor hohere Wachstumsraten in der Wirtschaft aufweisen Es ist jedoch schwierig, verschiedenartige rechtliche und kulturelle Umwelten in diesen Analysen " konstant zu halten', was manchen zu der Auffassung veranlasst, dass diese Beziehung weniger auf Wettbewerb zuruckzu-fuhren ist als auf unterschiedliche rechtliche und kulturelle Verhaltnisse, die wirtschaftliches Wachstum begunstigen. Da diese Unterschiede innerhalb eines Landes nur gering sind, konnte eine uberregionale Analyse der Beziehung zwischen Wachstum und Wettbewerb auf dem Finanzmarkt durchaus besser gerecht werden. Die Autoren untersuchen funf grosse Regionen in Spanien im Zeitraum 1986-98. Mit Hilfe verschiedener Indikatoren des Wettbewerbs auf dem Markte werden Veranderungen im regionalen Wettbewerb und im Wachstum analysiert. Grangersche Kausalitatsuberprufungen zeigen, dass Unterschiede beim Wettbewerb nicht mit verbessertem regionalen Wachstum zusammenhangen. Obschon Wettbewerbsfreiheit die Rate der Guthaben anhob und die der Anleihen herabsetzte, haben diese Vorteile das regionale Wachstum nicht merklich beinflusst. Die positive Beziehung, die zwischen miteinander im Wettbewerb stehenden Markten und der Zunahme von "querlandein' Studien aufgezeigt wird, konnte stattdessen auf einen nicht spezifizierten dritten Faktor zuruckzufuhren sein, der beide beeinflusst.

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Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 37 (2003)
Issue (Month): 3 ()
Pages: 227-237

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Handle: RePEc:taf:regstd:v:37:y:2003:i:3:p:227-237
DOI: 10.1080/0034340032000065398
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