摘要：A competitive banking industry leads to an efficient allocation of financial resources,consequently increasing investment and economic growth. However, pervasive marketinefficiencies and outmoded business practices often deter competition in the bankingindustry of developing countries. The present study examines the determinants of bankcompetition in such nations for the period 1995-2014 and compares that with high incomecountries. Employing both fixed-effects and GMM estimations and using two differentmeasures of bank competition, we find greater diversification, credit risks and economicfreedom to promote competition in developing countries while higher capitalization,profitability and cost efficiency increases market power.
关键词：Lerner Index; Boone Indicator; Diversification; Cost Efficiency; Panel Data
