Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council
The relationship between bank competition, firm access to finance, and economic growth is a much debated topic in the economic literature and in policy circles. This paper uses a panel of 23 manufacturing sectors over 2002-10 to investigate the imp...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/05/26419585/bank-competition-financial-dependence-economic-growth-gulf-cooperation-council http://hdl.handle.net/10986/24526 |
| id |
okr-10986-24526 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO CREDIT CREDIT MARKETS FOREIGN ENTRY CAPITAL MARKETS FINANCIAL SERVICES BORROWER STATE‐OWNED BANKS ECONOMIC GROWTH EXTERNAL FINANCING CREDIT ALLOCATION CAPITAL ACCUMULATION EXTERNAL FUNDS FINANCING FINANCIAL MANAGEMENT BANKING INDUSTRY INTEREST MORAL HAZARD INDUSTRY BIAS PRIVATE CREDIT PRIVATE CREDIT AVAILABILITY OF CREDIT BANKING SYSTEM SERVICES PUBLIC SERVICES ACCESS TO EXTERNAL FINANCE BANKING SYSTEMS FINANCIAL MANAGEMENT CAPITAL STRUCTURE AVAILABILITY OF CREDIT CREDIT CONSTRAINTS DEFAULT RISK INFORMATION SHARING ECONOMIC POLICY CREDIT ALLOCATION SOURCES OF FINANCE CAPITAL MARKETS BORROWERS BANK ASSETS GREATER ACCESS INTERNATIONAL BANK INFORMATION ASYMMETRIES CASH FLOWS BANK COMPETITION BANKING SECTOR BANKING SYSTEMS BANK LENDING BANKING CRISES EXTERNAL FINANCE DEFAULT RISK LACK OF CREDIT CREDIT ACCESS RETURN ON ASSETS MORAL HAZARD FOREIGN BANKS ADVANCED ECONOMIES BANK ASSETS CREDIT BUREAUS CREDIT BUREAUS LENDING DECISIONS CORPORATE FINANCE INFORMATION SHARING FINANCIAL SERVICES PROVIDERS FINANCIAL INSTITUTIONS MARKETS PUBLIC SERVICES ENTRY BARRIERS ACCESS TO FINANCE ENTERPRISES FINANCIAL ACCESS BANK CREDIT SOURCES OF FINANCE BANK LENDING REAL ESTATE RETURN ON ASSETS FINANCE BANKING SECTOR ENTRY BARRIERS INFORMATION ASYMMETRY BANKS SOURCES OF FINANCE STATE‐ OWNED BANKS CREDIT INFORMATION CREDIT CONSTRAINTS CREDIT REGISTRIES CAPITAL RETAIL BANKING FINANCIAL STABILITY PUBLIC POLICIES ACCESS TO FINANCE CREDIT ACCESS VALUE BANK CREDIT ACCESSIBILITY FOREIGN ENTRY EXTERNAL FUNDS EXPENDITURES CREDIT INFORMATION CIVIL SERVICE FOREIGN BANKS FINANCIAL ACCESS GOVERNMENT INTERVENTION BANK COMPETITION INFORMATION ASYMMETRIES RISK OF BANK FAILURE FINANCIAL INSTITUTIONS DIVERSIFICATION SECURITIES SYSTEMIC INSTABILITY GOVERNANCE INSURANCE FINANCIAL DEVELOPMENT ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO EXTERNAL FINANCE ECONOMIC DEVELOPMENT LENDING DECISIONS INFORMATION ASYMMETRY BANK CREDIT FINANCIAL SERVICES PROVIDERS FINANCIAL DEVELOPMENT RETAINED EARNINGS STATE‐OWNED BANKS REAL ESTATE INVESTMENT FINANCIAL INTERMEDIATION RISK CAPITAL STRUCTURE CREDIT REGISTRY FINANCIAL MARKETS BANKING COOPERATION BANKING INDUSTRY FINANCIAL SECTOR DEVELOPMENT REVENUE LACK OF CREDIT BANKING SYSTEM EARNINGS GREATER ACCESS BORROWING LENDING CAPITAL EXPENDITURES FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES EXTERNAL FINANCING ENTREPRENEURSHIP BANKING CRISES FINANCIAL MARKETS GOVERNMENTS BANK FAILURE CIVIL SERVICE CREDIT MARKETS RETAINED EARNINGS ECONOMIC GROWTH CREDIT REGISTRY FINANCIAL SECTOR DEVELOPMENT FINANCIAL DEPTH INCOME GROUPS GOVERNMENT INTERVENTION CREDIT MARKET COMPETITION EMPLOYEES |
| spellingShingle |
ACCESS TO CREDIT CREDIT MARKETS FOREIGN ENTRY CAPITAL MARKETS FINANCIAL SERVICES BORROWER STATE‐OWNED BANKS ECONOMIC GROWTH EXTERNAL FINANCING CREDIT ALLOCATION CAPITAL ACCUMULATION EXTERNAL FUNDS FINANCING FINANCIAL MANAGEMENT BANKING INDUSTRY INTEREST MORAL HAZARD INDUSTRY BIAS PRIVATE CREDIT PRIVATE CREDIT AVAILABILITY OF CREDIT BANKING SYSTEM SERVICES PUBLIC SERVICES ACCESS TO EXTERNAL FINANCE BANKING SYSTEMS FINANCIAL MANAGEMENT CAPITAL STRUCTURE AVAILABILITY OF CREDIT CREDIT CONSTRAINTS DEFAULT RISK INFORMATION SHARING ECONOMIC POLICY CREDIT ALLOCATION SOURCES OF FINANCE CAPITAL MARKETS BORROWERS BANK ASSETS GREATER ACCESS INTERNATIONAL BANK INFORMATION ASYMMETRIES CASH FLOWS BANK COMPETITION BANKING SECTOR BANKING SYSTEMS BANK LENDING BANKING CRISES EXTERNAL FINANCE DEFAULT RISK LACK OF CREDIT CREDIT ACCESS RETURN ON ASSETS MORAL HAZARD FOREIGN BANKS ADVANCED ECONOMIES BANK ASSETS CREDIT BUREAUS CREDIT BUREAUS LENDING DECISIONS CORPORATE FINANCE INFORMATION SHARING FINANCIAL SERVICES PROVIDERS FINANCIAL INSTITUTIONS MARKETS PUBLIC SERVICES ENTRY BARRIERS ACCESS TO FINANCE ENTERPRISES FINANCIAL ACCESS BANK CREDIT SOURCES OF FINANCE BANK LENDING REAL ESTATE RETURN ON ASSETS FINANCE BANKING SECTOR ENTRY BARRIERS INFORMATION ASYMMETRY BANKS SOURCES OF FINANCE STATE‐ OWNED BANKS CREDIT INFORMATION CREDIT CONSTRAINTS CREDIT REGISTRIES CAPITAL RETAIL BANKING FINANCIAL STABILITY PUBLIC POLICIES ACCESS TO FINANCE CREDIT ACCESS VALUE BANK CREDIT ACCESSIBILITY FOREIGN ENTRY EXTERNAL FUNDS EXPENDITURES CREDIT INFORMATION CIVIL SERVICE FOREIGN BANKS FINANCIAL ACCESS GOVERNMENT INTERVENTION BANK COMPETITION INFORMATION ASYMMETRIES RISK OF BANK FAILURE FINANCIAL INSTITUTIONS DIVERSIFICATION SECURITIES SYSTEMIC INSTABILITY GOVERNANCE INSURANCE FINANCIAL DEVELOPMENT ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO EXTERNAL FINANCE ECONOMIC DEVELOPMENT LENDING DECISIONS INFORMATION ASYMMETRY BANK CREDIT FINANCIAL SERVICES PROVIDERS FINANCIAL DEVELOPMENT RETAINED EARNINGS STATE‐OWNED BANKS REAL ESTATE INVESTMENT FINANCIAL INTERMEDIATION RISK CAPITAL STRUCTURE CREDIT REGISTRY FINANCIAL MARKETS BANKING COOPERATION BANKING INDUSTRY FINANCIAL SECTOR DEVELOPMENT REVENUE LACK OF CREDIT BANKING SYSTEM EARNINGS GREATER ACCESS BORROWING LENDING CAPITAL EXPENDITURES FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES EXTERNAL FINANCING ENTREPRENEURSHIP BANKING CRISES FINANCIAL MARKETS GOVERNMENTS BANK FAILURE CIVIL SERVICE CREDIT MARKETS RETAINED EARNINGS ECONOMIC GROWTH CREDIT REGISTRY FINANCIAL SECTOR DEVELOPMENT FINANCIAL DEPTH INCOME GROUPS GOVERNMENT INTERVENTION CREDIT MARKET COMPETITION EMPLOYEES Caggiano, Giovanni Calice, Pietro Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council |
| geographic_facet |
Middle East and North Africa Middle East |
| relation |
Policy Research Working Paper;No. 7687 |
| description |
The relationship between bank
competition, firm access to finance, and economic growth is
a much debated topic in the economic literature and in
policy circles. This paper uses a panel of 23 manufacturing
sectors over 2002-10 to investigate the impact of bank
competition on industry growth in the Gulf Cooperation
Council economies. The results show that greater competition
allows financially dependent firms to grow faster. In
addition, the results show that lower restrictions on banks’
permissible activities, better credit information, and
greater institutional effectiveness mitigate the damaging
impact of low competition. These results are robust to a
variety of checks. The findings suggest that improving bank
competition should be an important aspect of the financial
sector development agenda in the Gulf Cooperation Council. |
| format |
Working Paper |
| author |
Caggiano, Giovanni Calice, Pietro |
| author_facet |
Caggiano, Giovanni Calice, Pietro |
| author_sort |
Caggiano, Giovanni |
| title |
Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council |
| title_short |
Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council |
| title_full |
Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council |
| title_fullStr |
Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council |
| title_full_unstemmed |
Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council |
| title_sort |
bank competition, financial dependence, and economic growth in the gulf cooperation council |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/05/26419585/bank-competition-financial-dependence-economic-growth-gulf-cooperation-council http://hdl.handle.net/10986/24526 |
| _version_ |
1764456950909632512 |
| spelling |
okr-10986-245262021-04-23T14:04:22Z Bank Competition, Financial Dependence, and Economic Growth in the Gulf Cooperation Council Caggiano, Giovanni Calice, Pietro ACCESS TO CREDIT CREDIT MARKETS FOREIGN ENTRY CAPITAL MARKETS FINANCIAL SERVICES BORROWER STATE‐OWNED BANKS ECONOMIC GROWTH EXTERNAL FINANCING CREDIT ALLOCATION CAPITAL ACCUMULATION EXTERNAL FUNDS FINANCING FINANCIAL MANAGEMENT BANKING INDUSTRY INTEREST MORAL HAZARD INDUSTRY BIAS PRIVATE CREDIT PRIVATE CREDIT AVAILABILITY OF CREDIT BANKING SYSTEM SERVICES PUBLIC SERVICES ACCESS TO EXTERNAL FINANCE BANKING SYSTEMS FINANCIAL MANAGEMENT CAPITAL STRUCTURE AVAILABILITY OF CREDIT CREDIT CONSTRAINTS DEFAULT RISK INFORMATION SHARING ECONOMIC POLICY CREDIT ALLOCATION SOURCES OF FINANCE CAPITAL MARKETS BORROWERS BANK ASSETS GREATER ACCESS INTERNATIONAL BANK INFORMATION ASYMMETRIES CASH FLOWS BANK COMPETITION BANKING SECTOR BANKING SYSTEMS BANK LENDING BANKING CRISES EXTERNAL FINANCE DEFAULT RISK LACK OF CREDIT CREDIT ACCESS RETURN ON ASSETS MORAL HAZARD FOREIGN BANKS ADVANCED ECONOMIES BANK ASSETS CREDIT BUREAUS CREDIT BUREAUS LENDING DECISIONS CORPORATE FINANCE INFORMATION SHARING FINANCIAL SERVICES PROVIDERS FINANCIAL INSTITUTIONS MARKETS PUBLIC SERVICES ENTRY BARRIERS ACCESS TO FINANCE ENTERPRISES FINANCIAL ACCESS BANK CREDIT SOURCES OF FINANCE BANK LENDING REAL ESTATE RETURN ON ASSETS FINANCE BANKING SECTOR ENTRY BARRIERS INFORMATION ASYMMETRY BANKS SOURCES OF FINANCE STATE‐ OWNED BANKS CREDIT INFORMATION CREDIT CONSTRAINTS CREDIT REGISTRIES CAPITAL RETAIL BANKING FINANCIAL STABILITY PUBLIC POLICIES ACCESS TO FINANCE CREDIT ACCESS VALUE BANK CREDIT ACCESSIBILITY FOREIGN ENTRY EXTERNAL FUNDS EXPENDITURES CREDIT INFORMATION CIVIL SERVICE FOREIGN BANKS FINANCIAL ACCESS GOVERNMENT INTERVENTION BANK COMPETITION INFORMATION ASYMMETRIES RISK OF BANK FAILURE FINANCIAL INSTITUTIONS DIVERSIFICATION SECURITIES SYSTEMIC INSTABILITY GOVERNANCE INSURANCE FINANCIAL DEVELOPMENT ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO EXTERNAL FINANCE ECONOMIC DEVELOPMENT LENDING DECISIONS INFORMATION ASYMMETRY BANK CREDIT FINANCIAL SERVICES PROVIDERS FINANCIAL DEVELOPMENT RETAINED EARNINGS STATE‐OWNED BANKS REAL ESTATE INVESTMENT FINANCIAL INTERMEDIATION RISK CAPITAL STRUCTURE CREDIT REGISTRY FINANCIAL MARKETS BANKING COOPERATION BANKING INDUSTRY FINANCIAL SECTOR DEVELOPMENT REVENUE LACK OF CREDIT BANKING SYSTEM EARNINGS GREATER ACCESS BORROWING LENDING CAPITAL EXPENDITURES FINANCIAL SECTOR DEVELOPMENT FINANCIAL SERVICES EXTERNAL FINANCING ENTREPRENEURSHIP BANKING CRISES FINANCIAL MARKETS GOVERNMENTS BANK FAILURE CIVIL SERVICE CREDIT MARKETS RETAINED EARNINGS ECONOMIC GROWTH CREDIT REGISTRY FINANCIAL SECTOR DEVELOPMENT FINANCIAL DEPTH INCOME GROUPS GOVERNMENT INTERVENTION CREDIT MARKET COMPETITION EMPLOYEES The relationship between bank competition, firm access to finance, and economic growth is a much debated topic in the economic literature and in policy circles. This paper uses a panel of 23 manufacturing sectors over 2002-10 to investigate the impact of bank competition on industry growth in the Gulf Cooperation Council economies. The results show that greater competition allows financially dependent firms to grow faster. In addition, the results show that lower restrictions on banks’ permissible activities, better credit information, and greater institutional effectiveness mitigate the damaging impact of low competition. These results are robust to a variety of checks. The findings suggest that improving bank competition should be an important aspect of the financial sector development agenda in the Gulf Cooperation Council. 2016-06-14T19:47:36Z 2016-06-14T19:47:36Z 2016-05 Working Paper http://documents.worldbank.org/curated/en/2016/05/26419585/bank-competition-financial-dependence-economic-growth-gulf-cooperation-council http://hdl.handle.net/10986/24526 English en_US Policy Research Working Paper;No. 7687 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications Research Publications & Research :: Policy Research Working Paper Middle East and North Africa Middle East |