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Access to financial intermediaries and external capital acquisition

Author

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  • Backman , Mikaela

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Sweden)

  • Wallin, Tina

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Sweden)

Abstract

We examine whether low access to financial intermediaries works as an obstacle acquiring financial capital for Swedish firms by using information from the Community Innovation Survey indicating whether firms perceive the acquisition of external capital to be difficult. This perception is explained by the distance to the firms’ nearest financial intermediaries and their total local supply. The results indicate that the distance to banks is related to a larger problem of obtaining external financial capital in rural areas.

Suggested Citation

  • Backman , Mikaela & Wallin, Tina, 2017. "Access to financial intermediaries and external capital acquisition," Working Paper Series in Economics and Institutions of Innovation 454, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0454
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    References listed on IDEAS

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    More about this item

    Keywords

    financial capital; bank offices; geographical distance; Community Innovation Survey;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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