Bank market structure and entrepreneurship
AbstractThis paper investigates the impact of bank market structure differences within U.S. states on entrepreneurial activity. A panel model is used to evaluate differences in new firm starts within the states relative to the bank market structure and competition. The results indicate that states with more small banks, as measured by the number of unit banks, and banks with more branch locations contribute to new firm creation. Overall competition, as measured by the total number of banking institutions, has a negative effect on firm creation. There is limited evidence that bank failures also have a negative impact on firm creation within the state. Copyright Springer Science+Business Media, LLC. 2012
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Bibliographic InfoArticle provided by Springer in its journal Small Business Economics.
Volume (Year): 39 (2012)
Issue (Month): 4 (November)
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Web page: http://www.springerlink.com/link.asp?id=100338
Entrepreneur; Banking market; Bank competition; Firm creation; Community bank; Relationship banking; C33; G18; G21; L16; L26; M13;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
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