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removing barriers to bank entry on bank competition and economic growth. As governments were not concerned about systemic … stability in this period, we are able to isolate the effects of bank competition from those of state implicit guarantees. We … find that the introduction of free banking laws stimulated the creation of new banks and led to more bank failures. Our …
Persistent link: https://www.econbiz.de/10010227307
There is mixed support for the hypothesis that the banking sector is a channel for economic growth. While most studies on economic growth in Gulf Cooperation Council (GCC) countries have not distinguished between conventional banks and Islamic banks, this study contributes to the empirical...
Persistent link: https://www.econbiz.de/10011332914
In an influential paper, La Porta, Lopez-De-Silanes and Shleifer (2002) argued that public ownership of banks is associated with lower GDP growth. We show that this relationship does not hold for all countries, but depends on a country's financial development and political institutions. Public...
Persistent link: https://www.econbiz.de/10013137631
Competition among banks promotes growth and stability for an economy with production externality. Following Arrow and Debreu (1954), I formulate a standard growth model with externality — a two-period version of Romer (1986) — as a game among consumers, firms, and intermediaries. The...
Persistent link: https://www.econbiz.de/10013116440
Bank focused how to increase profit. But, sustainability of growth is more important. This study examines the effect of … becomes important related to the bank's strategy to continue and grow in order to expand its business maximally while …
Persistent link: https://www.econbiz.de/10012861068
-sized enterprises (SMEs), this study seeks to identify the effect of bank market power on aggregate growth components. We test for a pre …-crisis sample whether bank market power spurs or hinders the reallocation of resources across informationally opaque firms … in Germany. The results show that bank markups spur aggregate SME growth, primarily through technical change and the …
Persistent link: https://www.econbiz.de/10013037496
We show that politically connected banks influence economic activity. We exploit shocks to individual banks’ political capital following close US congressional elections. We find that regional output growth increases when banks active in the region experience an average positive shock to their...
Persistent link: https://www.econbiz.de/10013244851
This paper analyses the effect of bank profitability on economic growth. While policymakers have shown major concerns … for low levels of bank profitability, there are no empirical studies on the growth effects of bank profitability. To fill … this gap, we investigate the impact of bank profitability on economic growth using a sample of 133 countries during the …
Persistent link: https://www.econbiz.de/10012915566
maximize bank profits. These contracts are derived for both a monopolistic and a competitive banking industry. The analysis …
Persistent link: https://www.econbiz.de/10013491622
This study provides new evidence on the relationship between finance and economic growth using an innovative dynamic panel threshold technique. The sample consists of 87 developed and developing countries. The empirical results indicate that there is a threshold effect in the finance-growth...
Persistent link: https://www.econbiz.de/10010195667