Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 1999-04-14
Number: 99-028/2
Author-Name: Joseph F. Francois
Author-Email: francois@few.eur.nl
Author-Workplace-Name: Erasmus University Rotterdam
Author-Name: Lutger Schuknecht
Author-Workplace-Name: World Trade Organisation
Title: Trade in Financial Services: Procompetitive Effects and Growth Performance
Abstract: In this paper we explore linkages between financial services tradeand growth. We offer aformalization of the argument that trade, through the fostering offinancial market integration,may yield important long-run effects related to increasedcompetition. The relationshipsformalized here link long-run economic performance to scale economiesand cost structures inthe financial services sector, and to market concentration in thesector. We first develop ananalytical model.  This motivates an econometric exercise. Cross-country growth regressionspoint to a strong positive relationship between financial sectorcompetition and financial sectoropenness, and between growth and financial sector competition.
Classification-JEL: F40; F13; F43
Keywords: financial services trade; service trade and imperfect competition; trade in services and growth
File-Url: https://papers.tinbergen.nl/99028.pdf
File-Format: application/pdf
File-Size: 86704 bytes
Handle: RePEc:tin:wpaper:19990028