Abstract

GOMEZ RODRIGUEZ, Tomas; RIOS BOLIVAR, Humberto  and  ZAMBRANO REYES, Adriana. Long-term relation between bank competition and economic growth: An international approach by income level. Contad. Adm [online]. 2022, vol.67, n.3, 00004.  Epub June 06, 2023. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2022.3245.

Competition in the banking sector could play a critical role in the long-term economic growth of countries. Therefore, three different measures of competition are used to analyze this relationship: the Lerner index, the Boone index and the concentration index. Gross Domestic Product per capita by purchasing power parity was used as the dependent variable. For each variable, three samples are utilized which are classified into high, middle and low income; following the work of Dayé, Housa and Reding (2016). For the estimation, the following methods were used: Fully Modified Ordinary Least Squares and the Dynamic Ordinary Least Squares method. The results indicate that the high-income and low-income samples for the bank concentration index variable, as well as the low-income sample for the Boone index variable show evidence supporting the market power approach.

Keywords : long-run; cointegration; bank competition; economic growth; international.

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