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The Spatial Structure of Financial Development in Brazil

Author

Listed:
  • Marco Crocco
  • Fabiana Santos
  • Pedro Amaral

Abstract

Abstract 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 a more developed financial system tends to be surrounded by municipalities with less developed financial systems. La structure spatiale du développement financier au Brésil Rèsumè En utilisant un estimateur GMM pour un modèle à panneau spatial, avec un décalage spatial endogène et des erreurs à moyenne mobile spatiale, nous examinons la structure spatiale du système financier au Brésil. Les résultats semblent indiquer l'existence d'une association spatiale négative entre les municipalités brésiliennes sur le plan de leur système financier, dans le cadre de laquelle une municipalité dotée d'un système financier plus évolué a tendance à être entourée de municipalités possédant des systèmes financiers moins évolués. La estructura espacial del desarrollo financiero en Brasil Extracto Utilizando un estimador GMM (Método General de Momentos) para un modelo de panel espacial con un lapso espacial endógeno y errores de promedios móviles espaciales, investigamos la estructura espacial del sistema financiero en Brasil. Los resultados apuntan hacia una asociación espacial negativa entre el sistema financiero de las municipalidades brasileñas, de forma que una municipalidad con un sistema financiero más desarrollado tiende a estar rodeada de municipalidades con sistemas financieros menos desarrollados.

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  • Marco Crocco & Fabiana Santos & Pedro Amaral, 2010. "The Spatial Structure of Financial Development in Brazil," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 181-203.
    • Handle: RePEc:taf:specan:v:5:y:2010:i:2:p:181-203
    DOI: 10.1080/17421770903511973
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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. 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.
    3. Braga, Marcelo José & Pessoa, Filipe de Morais Cangussu, 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.
    4. 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.
    5. 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.
    6. 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.

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    More about this item

    Keywords

    Financial development; spatial structure; bank strategy; Brazil; O16; R12; G21;
    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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