THE LEVEL OF COMPETITION IN THE BANKING SECTOR AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS OF TURKISH CASE

Year 2020, Volume: 2 Issue: 2, 56 - 63, 30.09.2020

Hale Kırer Silva Lecuna , Serçin Sahin

https://doi.org/10.46959/jeess.786091

Abstract

It is mostly observed that a competitive system provides a lot of advantages for consumers; such as more goods and services, lower prices and higher quality. We can include this argument for the banking sector. The numerous numbers of theoretical and empirical studies has been made for the sector support this. Therefore, the level of competition is crucial for both borrowers and lenders, which directly affect economic growth of a country. In this context our aim is to investigate the relationship between competition level of the banking sector and economic growth in Turkey.

Keywords

Banking, Competition, Market structure

References

• Akbaş, H. E. (2012) “Determinants Of Bank Profitability: An Investigation On Turkish Banking Sector”, http://dspace.marmara.edu.tr/handle/11424/39801 (21.01.2018)
• Asante, S., Agyapong D.,and Adam, A. M. (2011) “Bank Competition, Stock Market and Economic Growth in Ghana”, International Journal of Business Administration, Sciedu Press, Vol. 2, No. 4; 33-41.
• Beck, T. (2008) “Bank Competition and Financial Stability: Friends or Foes?”, The World Bank, Policy Research Working Paper, No: 4656, http://documents1.worldbank.org/curated/en/673071468314707800/pdf/wps4656.pdf (01.02.2018)
• Cetorelli (2001) “Competition among banks: Good or bad?”, Federal Reserve Bank of Chicago, pp.38-47, https://fraser.stlouisfed.org/files/docs/historical/frbchi/economicperspectives/frbchi_econper_2001q2.pdf#page=40 (12.01.2018)
• Cetorelli, N., and Strahan, P. (2006). Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets. Journal of Finance.
• Claessens, S. and Laeven, L. (2005). Financial Dependence, Banking Sector Competition, and Economic Growth. World Bank Policy Research Working Paper 3481.
• Coccorese, P. (2017) “Banking competition and economic growth”, https://www.siecon.org/sites/siecon.org/files/oldfiles/uploads/2017/04/Coccorese.pdf?cv=1 (01.04.2018)
• Poshakwale S. S. and Qian B. (2011) “Competitiveness and Efficiency of the Banking Sector and Economic Growth in Egypt”, African Development Review, Vol. 23, No. 1, 2011, 99–120
• Rhoades S. A. (1993) “The Herfindahl-Hirschman Index” 79 Fed. Res. Bull. 188, https://heinonline.org/HOL/LandingPage?handle=hein.journals/fedred79&div=37&id=&page= (01.02.2018)
• Świtała F., Olszak1 M,.Kowalska I. (2013) “Competition in commercial banks in Poland – analysis of Panzar-Rosse H-statistics”, University of Warsaw, Faculty of Management Press, Faculty of Management Working Paper Series 4, file:///Users/halekirer/Downloads/WPS42013SwitalaOlszakKowalska.pdf (02.02.2018)
• White, A. P. (1982) “A Note on Market Structure Measures and the Characteristics of Markets That They ‘Measure’”, Southern Economic Journal, 49(2), pp. 542-549