Bank concentration and the use of bank financing across countries Data source: Global Financial Development Indicators GFD, World Bank (You can directly access this database via the website of the World Bank). Variables: Bank concentration (%):& Firms using banks to finance investments (%) Remark: Concentration ratio is the assets of the three largest commercial banks as a share of total commercial banking assets. Data on the percentage of firms using bank financing is from six surveys. Period: 2002 to 2017 Countries in your sample: Each country in your sample should have at least 2 observations on firms using banks to finance investments and should have at least 14 observations on bank concentration over the specified period. Select all countries from GFD that meet this requirement. Works required: Calculate the mean bank concentration ratio and mean percentage of firms using banks to finance investments for each country in your sample over the specified period. In other words, each country in your sample has one observation on average bank concentration ratio and one observation on the average percentage of firms using banks to finance investments. Plot a diagram relating bank concentration ratio (on the x-axis) to firms using banks to finance investments (on the y-axis). Explain the observed relation between these two variables. Bank concentration and the use of bank financing across countries Data source: Global Financial Development Indicators GFD, World Bank (You can directly access this database via the website of the World Bank). Variables: Bank concentration (%):& Firms using banks to finance investments (%) Remark: Concentration ratio is the assets of the three largest commercial banks as a share of total commercial banking assets. Data on the percentage of firms using bank financing is from six surveys. Period: 2002 to 2017 Countries in your sample: Each country in your sample should have at least 2 observations on firms using banks to finance investments and should have at least 14 observations on bank concentration over the specified period. Select all countries from GFD that meet this requirement. Works required: Calculate the mean bank concentration ratio and mean percentage of firms using banks to finance investments for each country in your sample over the specified period. In other words, each country in your sample has one observation on average bank concentration ratio and one observation on the average percentage of firms using banks to finance investments. Plot a diagram relating bank concentration ratio (on the x-axis) to firms using banks to finance investments (on the y-axis). Explain the observed relation between these two variables
