Regional Financial Development and Bank Competition. Effects on Economic Growth
Juan Fernández de Guevara Radoselovics () and
Joaquin Maudos ()
Additional contact information
Juan Fernández de Guevara Radoselovics: University of Valencia; Ivie
Authors registered in the RePEc Author Service: Juan Fernández-de-Guevara ()
No 201092, Working Papers from Fundacion BBVA / BBVA Foundation
Many studies have analysed the effect of financial development and bank competition on economic growth from a cross-country perspective. However, to our knowledge, no paper has analysed the effect of these two financial variables on growth at regional level. This working paper examines the case of the Spanish regions in an attempt to fill this gap. Our results show that firms in industries with a greater dependence on external finance grow faster in more developed financial regions. The results also show that bank monopoly power has an inverted-U effect on economic growth, suggesting that market power has its highest effect at intermediate values. The effect is heterogeneous among firms according to the financial dependence of the industry they belong to. This result is consistent with the literature on relationship banking which argues that bank competition can have a negative effect on the availability of finance for more informationally opaque firms.
Keywords: Economic growth; regional financial development; bank competition. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.fbbva.es/TLFU/tlfu/ing/publicaciones/do ... index.jsp?codigo=250
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.fbbva.es/TLFU/tlfu/ing/publicaciones/documentos/fichadoc/index.jsp?codigo=250 [301 Moved Permanently]--> https://www.fbbva.es/TLFU/tlfu/ing/publicaciones/documentos/fichadoc/index.jsp?codigo=250)
Working Paper: Regional financial development and bank competition: effects on economic growth (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fbb:wpaper:201092
Access Statistics for this paper
More papers in Working Papers from Fundacion BBVA / BBVA Foundation Contact information at EDIRC.
Bibliographic data for series maintained by Fundacion BBVA / BBVA Foundation ().