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Bank location and financial liberalization reforms: evidence from microgeographic data

Huysentruyt, Marieke , Lefevere, Eva and Menon, Carlo (2010) Bank location and financial liberalization reforms: evidence from microgeographic data. SERC Discussion Papers, SERCDP0058. Spatial Economics Research Centre (SERC), London, UK.

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Abstract

We examine the effects of bank deregulation on the spatial dynamics of retail-bank branching, exploiting, much like a quasi-natural experiment, the context of intense liberalization reforms in Belgium in the late nineties. Using .ne-grained data on branch network dynamics within the metropolitan area of Antwerp and advancing novel spatial econometric techniques, we show that these liberalization reforms radically shifted and accelerated branch network dynamics. Entry and exit dynamics substantially intensified, the level change in financial void grew significantly, and bank choice markedly declined. Moreover, all these changes consistently extended (even with greater intensity) after the liberalization peak. However, the immediate and longer-term spatial ramifications of the financial sector liberalization were very distinct. All immediate changes systematically, differentially impacted the poorer and wealthier neighborhoods, disenfranchising the poorer neighbourhoods and favoring their wealthier counterparts. The longer-term effects on spatial patterns of change no longer exhibited this systematic relationship with neighborhood income. We draw out the policy implications of our findings

Item Type: Monograph (Working Paper)
Official URL: http://www.spatialeconomics.ac.uk/SERC/publication...
Additional Information: © 2010 Marieke Huysentruyt, Eva Lefevere and Carlo Menon
Library of Congress subject classification: G Geography. Anthropology. Recreation > G Geography (General)
H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
Journal of Economic Literature Classification System: O - Economic Development, Technological Change, and Growth > O1 - Economic Development
Sets: Research centres and groups > Spatial Economics Research Centre
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: SERCDP0058
Date Deposited: 28 Mar 2011 10:26
URL: http://eprints.lse.ac.uk/33551/

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