Article (Scientific journals)
Does bank competition alleviate credit constraints in developing countries?
Leon, Florian
2015In Journal of Banking and Finance, 57, p. 130-142
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Keywords :
Bank competition; Credit constraints; Developing countries
Abstract :
[en] Whether competition helps or hinders firms’ access to finance, particularly in the developing world, is in itself a much debated question in the economic literature and in policy circles. This paper considers the consequences of bank competition on credit constraints using firm level data covering 69 developing and emerging countries. In addition to the classical concentration measure, competition is assessed by computing three non-structural measures (Boone indicator, Lerner index and H-statistic). The results show that bank competition alleviates credit constraints and that bank concentration measure is not a robust predictor of a firm’s access to finance. The study highlights that bank competition not only leads to less severe loan approval decisions but also reduces borrower discouragement.
Disciplines :
Macroeconomics & monetary economics
Author, co-author :
Leon, Florian ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
External co-authors :
no
Language :
English
Title :
Does bank competition alleviate credit constraints in developing countries?
Publication date :
August 2015
Journal title :
Journal of Banking and Finance
ISSN :
0378-4266
Publisher :
Elsevier Science
Volume :
57
Pages :
130-142
Peer reviewed :
Peer Reviewed verified by ORBi
Available on ORBilu :
since 26 November 2015

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