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Banking on industry: the impact of financial services on regional industrial structure and development

Author

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  • Bos, Jaap W.B.

    (Finance, RS: GSBE EFME)

  • Degl'Innocenti, Marta

Abstract

We investigate the extent to which local banking market characteristics can explain where small enterprises (SEs) are located and how they thrive. We start from a simple theory that explains the channels along which local banking market structure can affect the growth of SEs. Subsequently, we make use of a highly detailed data set, exploit unique features of the Italian banking system and find that the structure of the banking system explains the regional distribution of SEs in Italy, in particular through the historical presence of small banks.

Suggested Citation

  • Bos, Jaap W.B. & Degl'Innocenti, Marta, 2018. "Banking on industry: the impact of financial services on regional industrial structure and development," Research Memorandum 009, Maastricht University, Graduate School of Business and Economics (GSBE).
    • Handle: RePEc:unm:umagsb:2018009
    DOI: 10.26481/umagsb.2018009
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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General

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