The Relationship between Banking Concentration and Economic Growth
As an important determinant of economic growth, the influence of financial structure is a major concern for researchers and policymakers. This paper focuses on the association between economic growth and banking concentration, which is a major dimension of financial structure. Since the existing literature has reached no agreement on whether banking concentration promotes or restricts economic growth, empirical analysis is necessary to provide the policymakers with guidance on how to strengthen countries' financial systems and promote their economic development. Using country-level panel data spanning from 1998 - 2010 to estimate fixed effects regression models, the study explores the relationship between banking concentration and general GDP growth as well as annual percentage growth in specific industries such as the agricultural, manufacturing and services industries. This paper finds limited evidence of such an association. These findings imply that policymakers may be able to strengthen countries' financial systems by adjusting banking structures without a detrimental effect on economic growth.
Showing items related by title, author, creator and subject.
The Road after Paris: The Relationship between Climate Change Policy Stringency and Economic Growth at the Country Level Allen, David P. (Georgetown University, 2016)Increased emissions of carbon dioxide and other greenhouse gases (GHG) have exacerbated the effects of climate change and led a steady rise in the average global temperature and intensified weather events. Countries sought ...
The relationship between income inequality and economic growth in OECD countries, including South Korea Lee, Hyuntak. (Georgetown University, 2008)
Why has Asia Succeeded While Africa has not? A Comparative Analysis of Economic Growth: What Factors have Driven The Divergence of Economic Performance Between East/SE Asia and Sub-Saharan Africa? Morrell, John A. (2006-04-18)A comparison of the economies of East and Southeast Asia with those in Sub-Saharan Africa could be suspect, as countries in these two regions are at such vastly different stages of development. Observers often claim that ...