The market structure of the banking sector and financially dependent manufacturing sectors

Indrit Hoxha ()

International Review of Economics & Finance, 2013, vol. 27, issue C, 432-444

Abstract: I explore the effect of the structure of the banking market on the performance of manufacturing sectors. The theoretical papers offer ambiguous explanations regarding the effects of banking market structure on the size of manufacturing sectors, and empirical studies that use cross country data do not reach a consensus on these effects. By using the Panzar–Rosse method to estimate a “H-statistic” competition index and conventional concentration indices, I provide evidence that industries that rely more on external financing perform better in countries where the banking competition is lower, and the banking concentration is greater.

Keywords: Banking concentration; Banking competition; Value added; Manufacturing sectors; Economic growth (search for similar items in EconPapers)
JEL-codes: D4 G21 L11 L80 O16 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:27:y:2013:i:c:p:432-444

DOI: 10.1016/j.iref.2013.01.004

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