TY - JOUR
T1 - Regional versus Global Integration of Eurozone Retail Banking Markets: Understanding the Recent Evidence from Price-Based Integration Measures
AU - Kleimeier, S.
AU - Sander, H.
PY - 2006/1/1
Y1 - 2006/1/1
N2 - We investigate the integration of euro-zone retail banking markets by comparing convergence and cointegration measures. As an innovation to the literature convergence measures are exposed to a difference-in-differences methodology which allows both, identifying the impact of the single currency and benchmarking euro zone-specific from global integration effects. We find that euro-zone convergence has largely been a result of integrating wholesale markets after the elimination of exchange rate risks. After 1999 integration is mainly observed for a restricted “convergence club” excluding germany, ireland and belgium. Moreover, convergence is at least partly a global rather than euro zone-specific process.
AB - We investigate the integration of euro-zone retail banking markets by comparing convergence and cointegration measures. As an innovation to the literature convergence measures are exposed to a difference-in-differences methodology which allows both, identifying the impact of the single currency and benchmarking euro zone-specific from global integration effects. We find that euro-zone convergence has largely been a result of integrating wholesale markets after the elimination of exchange rate risks. After 1999 integration is mainly observed for a restricted “convergence club” excluding germany, ireland and belgium. Moreover, convergence is at least partly a global rather than euro zone-specific process.
U2 - 10.1016/j.qref.2006.02.002
DO - 10.1016/j.qref.2006.02.002
M3 - Article
SN - 1062-9769
VL - 46
SP - 353
EP - 368
JO - Quarterly Review of Economics and Finance
JF - Quarterly Review of Economics and Finance
IS - 3
ER -