Trade in Financial Services: Procompetitive Effects and Growth Performance

Joseph Francois () and Ludger Schuknecht ()

No 2144, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In this paper we explore linkages between financial services trade and growth. We offer a formalization of the argument that trade, through the fostering of financial market integration, may yield important long-run effects related to increased competition. The relationships formalized here link long-run economic performance to scale economies and cost structures in the financial services sector, and to market concentration in the sector. We first develop an analytical model. This motivates an econometric exercise. Cross-country growth regressions point to a strong positive relationship between financial sector competition and financial sector openness, and between growth and financial sector competition.

Keywords: Financial Services Trade; Service Trade and Imperfect Competition; Trade in Services and Growth (search for similar items in EconPapers)
JEL-codes: F13 F40 F43 (search for similar items in EconPapers)
Date: 1999-05
View list of references View citations in EconPapers

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP2144.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Trade in Financial Services: Procompetitive Effects and Growth Performance (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cpr:ceprdp:2144

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP2144.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG
Series data maintained by ().