Trade in Financial Services: Procompetitive Effects and Growth Performance

Joseph Francois and Lutger Schuknecht
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Lutger Schuknecht: World Trade Organisation

No 99-028/2, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: In this paper we explore linkages between financial services tradeand growth. We offer aformalization of the argument that trade, through the fostering offinancial market integration,may yield important long-run effects related to increasedcompetition. The relationshipsformalized here link long-run economic performance to scale economiesand cost structures inthe financial services sector, and to market concentration in thesector. We first develop ananalytical model. This motivates an econometric exercise. Cross-country growth regressionspoint to a strong positive relationship between financial sectorcompetition and financial sectoropenness, 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: 1999-04-14
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Trade in Financial Services: Procompetitive Effects and Growth Performance (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:19990028

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