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Small banks and innovative entrepreneurial culture in Italy: A historical perspective

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Listed:
  • Cosci, Stefania
  • Mirra, Loredana
  • Terzo, Giuseppe

Abstract

Based on provincial (NUTS 3) data from a comprehensive survey conducted in 1927 by the Italian National Statistical Institute (ISTAT), this paper investigates the effect of the historical presence of small financial institutions on current start-up rates. It finds evidence that their presence positively affects current start-up rates in high and medium-high technology manufacturing sectors. In contrast, it does not find any significant effect in low and medium-low technology manufacturing sectors. These results suggest that the local presence of small financial institutions may have been essential in promoting the development of entrepreneurship in those sectors that are intrinsically more opaque and riskier.

Suggested Citation

  • Cosci, Stefania & Mirra, Loredana & Terzo, Giuseppe, 2023. "Small banks and innovative entrepreneurial culture in Italy: A historical perspective," Economics Letters, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:ecolet:v:230:y:2023:i:c:s016517652300263x
    DOI: 10.1016/j.econlet.2023.111238
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    References listed on IDEAS

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    5. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2009. "Does Local Financial Development Matter?," Springer Books, in: Damiano Bruno Silipo (ed.), The Banks and the Italian Economy, chapter 0, pages 31-66, Springer.
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    More about this item

    Keywords

    Local banks; Entrepreneurial culture; Italian provinces; Historical data; Panel data;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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