Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/85875
Authors: 
Francois, Joseph F.
Eschenbach, Felix
Year of Publication: 
2002
Series/Report no.: 
Tinbergen Institute Discussion Paper 02-089/2
Abstract: 
We explore dynamic linkages between financial/banking sector openness, financial sector competition, and growth. We first develop an analytical model, highlighting links between long-run economic performance and services trade, through scale economies and market and cost structures in the financial services sector. This is folIowed by an econometric exercise based on data for 130 countries for the 1990s. Our resu1ts point to a strong positive relationship between financia1 sector competition/performance and financia1 sector openness (meaning foreign bank access to domestic markets), and between growth and financial sector competition/performance. They also point to the presence of sca1e economies in the sector.
Subjects: 
financial services trade
financial sector openness
service trade and imperfect competition
trade in services and growth
banking and growth.
JEL: 
F40
F13
F43
G15
Document Type: 
Working Paper

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