Foreign Competition and Banking Industry Dynamics: An Application to Mexico

P. Dean Corbae and Pablo D’Erasmo
Authors registered in the RePEc Author Service: Pablo N. D'Erasmo

IMF Economic Review, 2015, vol. 63, issue 4, 830-867

Abstract: Our paper develops a simple general equilibrium framework to study the effects of global competition on banking industry dynamics and welfare. It applies the framework to the Mexican banking industry, which underwent a major structural change in the 1990s as a consequence of both government policy and external shocks. Given high concentration in the Mexican banking industry, domestic and foreign banks act strategically in the framework. After calibrating the model to Mexican data, the paper examines the welfare consequences of government policies which promote global competition. It finds relatively high economy-wide welfare gains from allowing foreign bank entry.

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.palgrave-journals.com/imfer/journal/v63/n4/pdf/imfer201540a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/imfer/journal/v63/n4/full/imfer201540a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Foreign competition and banking industry dynamics: an application to Mexico (2015)
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: https://EconPapers.repec.org/RePEc:pal:imfecr:v:63:y:2015:i:4:p:830-867

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().