Financial Dependence, Banking Sector Competition, and Economic Growth

Claessens, Stijn; Laeven, Luc

doi:10.1596/1813-9450-3481

Publication:
Financial Dependence, Banking Sector Competition, and Economic Growth

dc.contributor.author	Claessens, Stijn
dc.contributor.author	Laeven, Luc
dc.date.accessioned	2012-06-25T14:19:19Z
dc.date.available	2012-06-25T14:19:19Z
dc.date.issued	2005-01
dc.description.abstract	The relationships among competition in the financial sector, access of firms to external financing, and associated economic growth are ambiguous in theory. Moreover, measuring competition in the financial sector can be complex. In this paper the authors first estimate for 16 countries a measure of banking system competition based on industrial organization theory. They then relate this competition measure to growth of industries and find that greater competition in countries' banking systems allows financially dependent industries to grow faster. These results are robust under a variety of tests. Their results suggest that the degree of competition is an important aspect of financial sector functioning.	en
dc.identifier	http://documents.worldbank.org/curated/en/2005/01/5588129/financial-dependence-banking-sector-competition-economic-growth
dc.identifier.uri	http://hdl.handle.net/10986/8906
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper No. 3481
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	ACCOUNTING
dc.subject	ACCOUNTING PRACTICES
dc.subject	ACCOUNTING STANDARDS
dc.subject	ASSET RATIO
dc.subject	ASSETS
dc.subject	BANKING CONCENTRATION
dc.subject	BANKING SECTOR
dc.subject	BANKING SECTOR DEVELOPMENT
dc.subject	BANKING SYSTEM
dc.subject	BANKING SYSTEMS
dc.subject	BANKS
dc.subject	BARRIERS TO ENTRY
dc.subject	BENCHMARK
dc.subject	CAPITAL MARKETS
dc.subject	CAPITALIZATION
dc.subject	COLLUSION
dc.subject	COMMERCIAL BANKS
dc.subject	COMPANY LAW
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	COMPETITIVENESS
dc.subject	CONSOLIDATION
dc.subject	DEPOSITS
dc.subject	DEREGULATION
dc.subject	ECONOMIC GROWTH
dc.subject	ELASTICITY
dc.subject	EMERGING MARKETS
dc.subject	EQUILIBRIUM
dc.subject	EXPENDITURES
dc.subject	EXTERNAL FINANCING
dc.subject	FINANCIAL ANALYSIS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL INTERMEDIATION
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL SECTOR
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL SYSTEM
dc.subject	FINANCIAL SYSTEMS
dc.subject	FOREIGN BANKS
dc.subject	GDP
dc.subject	GDP PER CAPITA
dc.subject	GROWTH POTENTIAL
dc.subject	GROWTH RATE
dc.subject	INCOME
dc.subject	INNOVATION
dc.subject	INVESTMENT NEEDS
dc.subject	LATIN AMERICAN
dc.subject	LEGAL FRAMEWORK
dc.subject	MARGINAL COSTS
dc.subject	MARGINS
dc.subject	MONEY MARKET
dc.subject	MONOPOLISTIC COMPETITION
dc.subject	OWNERSHIP STRUCTURE
dc.subject	PERFECT COMPETITION
dc.subject	POSITIVE EFFECTS
dc.subject	PROPERTY RIGHTS
dc.subject	PROXY
dc.subject	PUBLIC ENTERPRISES
dc.subject	RETURN ON ASSETS
dc.subject	STOCK MARKET
dc.subject	TOTAL REVENUE
dc.subject	TRADE CREDIT
dc.subject	TRADE FINANCE
dc.subject	TRANSITION ECONOMIES
dc.subject	VALUE ADDED
dc.title	Financial Dependence, Banking Sector Competition, and Economic Growth	en
dspace.entity.type	Publication
okr.crosscuttingsolutionarea	Jobs
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2005/01/5588129/financial-dependence-banking-sector-competition-economic-growth
okr.globalpractice	Social Protection and Labor
okr.globalpractice	Health, Nutrition, and Population
okr.identifier.doi	10.1596/1813-9450-3481
okr.identifier.externaldocumentum	000009486_20050207173350
okr.identifier.internaldocumentum	5588129
okr.identifier.report	WPS3481
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/02/07/000009486_20050207173350/Rendered/PDF/wps3481.pdf	en
okr.topic	Economic Theory and Research
okr.topic	Banks and Banking Reform
okr.topic	Environmental Economics and Policies
okr.topic	International Terrorism and Counterterrorism
okr.topic	Health Economics and Finance
okr.topic	Social Protections and Labor :: Labor Policies
okr.topic	Payment Systems and Infrastructure
okr.topic	Health, Nutrition and Population
okr.unit	Research Support (DECRS)
okr.volume	1 of 1
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87