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2019 | OriginalPaper | Buchkapitel

17. Do Positive Bank Concentration Shocks Impact Economic Growth in South Africa?

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Abstract

Evidence shows that GDP declines to positive bank concentration shocks. In addition, evidence from the counterfactual analysis shows that actual GDP declines more than the counterfactual suggests. The decline is accentuated by the slowdown in investment, reduction in employment, increased unemployment and reduced credit growth due to the unexpected increase in bank concentration. Therefore, it is important for policymakers to lower the entry barriers and introduce a sliding scale of capital adequacy ratios that rise with the size of the banks.

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Fußnoten
1
These small firms create most of the new jobs while the older and larger firms create few and destroy many jobs. As a consequence, a concentrated banking sector may lower employment and raise unemployment, especially by focusing on the latter type of firms.
 
Literatur
Zurück zum Zitat Carlin, W., & Mayer, C. (2003). Finance, investment and growth. Journal of Financial Economics, 69(1), 191–226.CrossRef Carlin, W., & Mayer, C. (2003). Finance, investment and growth. Journal of Financial Economics, 69(1), 191–226.CrossRef
Zurück zum Zitat Cetorelli, N., & Gambera, M. (2001). Banking market structure, financial dependence and growth: International evidence from the industry data. Journal of Finance, 56(2), 617–648.CrossRef Cetorelli, N., & Gambera, M. (2001). Banking market structure, financial dependence and growth: International evidence from the industry data. Journal of Finance, 56(2), 617–648.CrossRef
Zurück zum Zitat Feldmannn, H. (2013). Banking systems concentration and labour market performance in industrial countries. Contemporary Economic Policy, 31(4), 719–732.CrossRef Feldmannn, H. (2013). Banking systems concentration and labour market performance in industrial countries. Contemporary Economic Policy, 31(4), 719–732.CrossRef
Metadaten
Titel
Do Positive Bank Concentration Shocks Impact Economic Growth in South Africa?
verfasst von
Eliphas Ndou
Thabo Mokoena
Copyright-Jahr
2019
DOI
https://doi.org/10.1007/978-3-030-19803-9_17