Integration, Productivity and Technological Spillovers: Evidence for Eurozone Banking Industries

Barbara Casu, Alessandra Ferrari (), Claudia Girardone and John Wilson
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Alessandra Ferrari: Department of Economics, University of Reading

No em-dp2014-01, Economics Discussion Papers from Department of Economics, University of Reading

Abstract: In the context of the debate on increased integration of Eurozone banking markets, this paper evaluates the impact of the Single Market on bank productivity and assesses the cross-border benefits of integration in terms of technological spillovers. We utilise a parametric metafrontier Divisia index to estimate productivity change and identify technological gaps. We then assess the extent to which productivity converges within and across banking industries as a result of technological spillovers. Our results suggest that bank productivity growth has occurred for most Eurozone countries up to the onset of the financial crisis, but has since reversed. Technological spillovers do exist, and have led to progression toward the best technology. However, convergence is not complete and significant long run differences in productivity persist. Improvements in technology are increasingly driven by a smaller number of banks and concentrated in fewer banking industries.

Keywords: European banking; financial integration; convergence; productivity growth (search for similar items in EconPapers)
JEL-codes: D24 G21 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-02-22
New Economics Papers: this item is included in nep-eff and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://www.reading.ac.uk/web/FILES/economics/emdp2014106.pdf

Related works:
Journal Article: Integration, productivity and technological spillovers: Evidence for eurozone banking industries (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:rdg:emxxdp:em-dp2014-01

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