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Banking Market Structure, Creation And Activity Of Firms: Early Evidence For Cooperatives In The Italian Case

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  • Francesca Gagliardi

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ABSTRACT**: This paper investigates whether local differences in banking competition impact on the creation and activity of firms, with a special focus on cooperatives. The empirical analysis, implemented on a sample of Italian firms, reveals non‐monotonic effects of bank market power on firm creation and activity. In regard to the former, a bell‐shaped relationship is found for both cooperative and non‐cooperative firms, suggesting that a moderately concentrated banking market favours firms’ creation. A less homogeneous pattern characterizes firms’ activity: a bell‐shaped parabola is still found for non‐cooperative firms, while a U‐shaped relationship emerges for cooperatives, showing that active coops benefit from relatively more intense banking competition.

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  • Francesca Gagliardi, 2009. "Banking Market Structure, Creation And Activity Of Firms: Early Evidence For Cooperatives In The Italian Case," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(4), pages 605-640, December.
    • Handle: RePEc:bla:annpce:v:80:y:2009:i:4:p:605-640
    DOI: 10.1111/j.1467-8292.2009.00400.x
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