Abstract

BENITEZ-MENDIETA, Verónica Belén. Scale economies in the banking sector of Paraguay. Period 2016-2020. Poblac.Desarro. [online]. 2022, vol.28, n.55, pp.46-58. ISSN 2076-054X.  https://doi.org/10.18004/pdfce/2076-054x/2022.028.55.046.

This research studies the presence or not of scale economies in the Paraguayan banking sec tor during the period 2016-2020. The gap in efficiency is presented as an issue that could be approached by taking advantage of economies of scale in the sector. The general objective is to determine the existence of scale economies in the banking sector of Paraguay, period 2016-2020, with secondary research design carried out at first. Then, laboratory research is used, in which it is estimated a panel data model, reaching the correlational level. In the study it is applied the analytical-synthetic method, with a mixed research approach. For the estimation, a translog function is used and the variables are costs, products and bank prices. The findings of the re search allow to verify that there are scale economies in the Paraguayan banking sector during 2016-2020, and that small banks have greater expansion capacity than large banks. The banking sector has growth potential to achieve efficiency by increasing the volume of banking products offered. It is concluded that it is possible to expand access to financial services, due to the lower unit costs that economies of scale represent, which are also translated into more affordable prices for the population.

Keywords : scale economies; banking sector; Paraguay.

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