IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v35y2025i2d10.1007_s00191-025-00897-7.html
   My bibliography  Save this article

Does banking diversity matter on the financial development–entrepreneurship nexus? Evidence from developed and developing countries

Author

Listed:
  • Cristian Barra

    (University of Salerno)

  • Christian D’Aniello

    (University of Salerno)

Abstract

The financial system is crucial in explaining and determining the formation of new enterprises, hence driving economic growth. This study seeks to answer two critical research questions: Is financial development (defined as the number of credit union and cooperative and commercial bank branches per 100,000 inhabitants and 1000 km2) helpful in the formation of new businesses? Is banking diversity (defined as the simultaneous presence of cooperative and commercial bank branches) important in the context of financial development and entrepreneurship? We employ a worldwide heterogeneous unbalanced sample consisting of 51 countries (developed and developing) from 2006 to 2020, considering information about two key types of financial intermediaries: commercial and credit union-cooperative. The empirical evidence, based on three separate estimators (OLS, FE, and IV-H), supports the importance of both financial intermediaries in fostering entrepreneurship, with commercial bank branches having a higher intensity. A battery of sensitivity analyses back up our empirical predictions, shedding light on the importance of policy implications that could be implemented to ensure the growth of the entrepreneurship fabric, as well as igniting a heated debate on the challenges of stimulating economic growth.

Suggested Citation

  • Cristian Barra & Christian D’Aniello, 2025. "Does banking diversity matter on the financial development–entrepreneurship nexus? Evidence from developed and developing countries," Journal of Evolutionary Economics, Springer, vol. 35(2), pages 281-308, April.
    • Handle: RePEc:spr:joevec:v:35:y:2025:i:2:d:10.1007_s00191-025-00897-7
    DOI: 10.1007/s00191-025-00897-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00191-025-00897-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00191-025-00897-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Entrepreneurship; Financial development; Bank diversity; International heterogeneous sample;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joevec:v:35:y:2025:i:2:d:10.1007_s00191-025-00897-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.