Rich regions, poor regions and bank branch deregulation in Spain

José Pastor, José Manuel Pavía (), Lorenzo Serrano Martinez and Emili Tortosa-Ausina
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José Manuel Pavía: Department of Applied Economics, Universitat de València

No 2016/02, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: This paper evaluates the links between financial deregulation and economic performance in a European context. Specifically, we study the relaxation of bank branching restrictions in Spain, which triggered a remarkable inter-regional expansion of savings banks that coincided with an unprecedented period of sustained economic expansion. Although related questions have been widely investigated for the US, experiences in Europe have received far less research attention. An additional contribution of the paper lies in its use of quantile regression, which allows us to investigate the possibility of economic effects taking into account the degree of regional development and we also explicitly consider the potential endogeneity of some of the regressors. Our results do not support the case for a positive effect of bank branch deregulation in Spain. Out-ofregion entry, in particular, does not seem to have had any specific positive effect on regional development and this result is quite homogeneous across provinces regardless of their relative wealth.

Keywords: bank; branch; development; province; quantile regression (search for similar items in EconPapers)
JEL-codes: C21 D40 G21 L11 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2016
New Economics Papers: this item is included in nep-eur and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Rich regions, poor regions and bank branch deregulation in Spain (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2016/02

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