Competition and financial institutions and markets development: A dynamic panel data analysis

Panel data from 140 countries over 2000-2014 period, allow to investigate the relationship between market competition and financial development, using the new IMF- FD index covering financial institutions and markets access, depth and efficiency. Three competition indicators are employed, i.e. Boone, Lerner and banks concertation, in addition to control of corruption and others control variables. Dummies are added to assess the relationship over 2008 financial crisis. Data are gathered from IMF-FD, World Bank -WDI, GFD and WGI. A dynamic panel GMM model is employed. Strong evidence of the positive impact of market competition, as measured by Boone index, on financial institutions and markets development is found, while banks concentration has a damaging effect on FD. Interestingly, none of our competition indexes affects financial institutions returns, which hold even over 2008 financial crisis, likely at the expense of depth and access in developing countries. Institutions, as proxied by control of corruption, have broader positive impact on FD particularly on financial markets. These findings have important implications for developing countries keen to foster the development of their financial system.

本数据集涵盖2000年至2014年期间140个国家的面板数据，旨在探究市场竞争与金融发展之间的关系。该数据集采用了国际货币基金组织（IMF）的金融发展指数（FD index），该指数涵盖了金融机构与市场准入、深度及效率等方面。在研究中，采用了包括Boone指数、Lerner指数以及银行合谋在内的三个竞争指标，并纳入了腐败控制和其他控制变量。为评估2008年金融危机期间的关系，添加了虚拟变量。数据来源于国际货币基金组织（IMF-FD）、世界银行（World Bank -WDI）、全球金融发展数据库（GFD）和世界治理指数（WGI）。研究结果表明，以Boone指数衡量的市场竞争对金融机构和市场发展具有积极的正向影响，而银行集中度对金融发展指数（FD）则产生了负面影响。值得注意的是，我们的竞争指标对金融机构的回报率没有影响，这一现象即使在2008年金融危机期间也未改变，这可能是以发展中国家深度和准入为代价的。通过腐败控制等指标作为代理，机构对金融发展指数（FD）具有更广泛的正向影响，特别是在金融市场方面。这些发现对那些渴望促进其金融体系发展的发展中国家具有重要的启示意义。