Bank market structure and industrialization: evidence from developing countries

Ebireri, John Efe (2014) Bank market structure and industrialization: evidence from developing countries. PhD thesis, University of Glasgow.

Abstract

This thesis examines how bank market structure affects industry performance in developing countries. A high degree of bank concentration would be associated with tight constraints and high borrowing costs, while it has also been argued that, it would be easier for firms to access credit if the banking system is concentrated. Foreign banks are seen to promote financial development and spur economic growth; while critics suggest that a larger foreign bank presence in developing countries is associated with less credit to the private sector. Also, government ownership of banks is responsible lower economic and slow financial development, while others argue that government banks promote long-run growth. The implications of bank market structure on the real economy are examined using cross-country, cross-industry panel data from developing countries, along with a variety of econometric techniques, and standard measures of industry performance. The research aims to ascertain whether bank market structure in developing countries influences financing for firms differently as a result of industry-specific characteristics. It also examines if institutional characteristics helps in explaining industrial performance in the short-run. As a follow-up to one of the findings, the research examines if banks would prefer to fund innovative firms in a liberalized environment by exploring the impact of financial development on the export structure. The main empirical findings are as follows: first, it may not be possible to identify robust or consistent findings concerning the effects of good institutions; secondly, it might not necessarily be the case that financial development specifically benefits firms based on specific industry characteristics; and finally, the research finds that banking sector development reduces export sophistication and increases export concentration. This may suggest that banking sector development enforces specialization according to existing comparative advantage.

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Keywords: Keywords: Bank concentration, foreign bank entry, government ownership of banks, financial development, industrialization, institutional quality, export sophistication, export diversification, developing countries.
• Subjects: H Social Sciences > H Social Sciences (General); H Social Sciences > HA Statistics; H Social Sciences > HB Economic Theory
• Colleges/Schools: College of Social Sciences > Adam Smith Business School > Economics
• Supervisor's Name: Paloni, Dr. Alberto
• Date of Award: 2014
• Depositing User: Mr John. E Ebireri
• Unique ID: glathesis:2014-5297
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 11 Jul 2014 13:35
• Last Modified: 11 Jul 2014 13:35
• URI: https://theses.gla.ac.uk/id/eprint/5297