Moretti, Luigi (2008): Bank Concentration and Structure of Manufacturing Sectors: Differences Between High and Low Income Countries.
Download (312kB) | Preview
This paper investigates the relationship between bank concentration and the real economy by analyzing the number and average size of firms in manufacturing industries in two samples of countries with differing levels of economic development. We use a panel of 42 countries and 27 manufacturing industries for the period 1993-2001, and we apply the Rajan-Zingales (1998) methodology. The main finding is that in developed countries higher levels of bank concentration are associated with lower number of firms, of bigger size, while in developing countries this relationship does not seem to be significant.
|Item Type:||MPRA Paper|
|Original Title:||Bank Concentration and Structure of Manufacturing Sectors: Differences Between High and Low Income Countries|
|Keywords:||Bank concentration; Industry structure; Country income groups;|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
|Depositing User:||Luigi Moretti|
|Date Deposited:||25. Nov 2009 21:51|
|Last Modified:||12. Feb 2013 00:15|
Barth J. R., Caprio Jr. G., and Levine R., 2001. "The Regulation and Supervision of Banks Around the World - a New Database." Policy Research Working Paper Series 2588, The World Bank.
Beck T., Demirgüç-Kunt A. and Levine R., 2000. “A New Database on Financial Development and Structure.” The World Bank Economic Review, 14, 597-605.
Beck T., Levine R. and Loayza N., 2000. “Finance and the Sources of Growth.” Journal of Financial Economics, 58, 1-2, 261-300.
Beck T., Demirgüç-Kunt A. and Maksimovic V., 2004. “Bank Competition and Access to Finance: International Evidence.” Journal of Money, Credit, and Banking, 36, 3, 627-648.
Beck T. and Demirgüç-Kunt A., 2005. “Law and Firms' Access to Finance.” American Law and Economics Review, 7, 1, 211-252.
Beck T., Demirgüç-Kunt A., Laeven L. and Levine R., 2008. “Finance, Firm Size, and Growth.” Journal of Money, Credit and Banking, 40, 7, 1379-1405.
Black S.E. and Strahan P.E., 2002. “Entrepreneurship and Bank Credit Availability.” Journal of Finance, 57, 6, 2807-2833.
Bonaccorsi di Patti E. and Dell’Ariccia G., 2004. “Bank Competition and Firm Creation.” Journal of Money, Credit, and Banking, 36, 2, 225-251.
Cestone G. and White L., 2003. “Anticompetitive Financial Contracting: The Design of Financial Claims.” Journal of Finance, 58,5, 2109-2142.
Cetorelli N., 1997. “The Role of Credit Market Competition on Lending Strategies and on Capital Accumulation.” Working Paper Series, Issues in Financial Regulation, WP-97-14, Federal Reserve Bank of Chicago.
Cetorelli N., 2001. “Does Bank Concentration Lead to Concentration in Industrial Sectors.” Working Paper Series, WP-2001-01, Federal Reserve Bank of Chicago.
Cetorelli N. and Gambera M., 2001. “Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data.” Journal of Finance, 56, 2, 617-648.
Cetorelli N., 2004. “Real Effects of Bank Competition.” Journal of Money, Credit and Banking, 36, 3, 543-558.
Cetorelli N. and Strahan P.E., 2006. “Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets.” Journal of Finance, 61, 1, 437-461.
Cohen J., 1967. “Financing Industrialization in Italy: 1894-1914.” Journal of Economic History, 27, 363-382.
Cooley T.F. and Quadrini V., 2001. “Financial Markets and Firm Dynamics.” American Economic Review, 91, 5, 1286-1310.
Deidda L. Fattouh B., 2005. “Concentration in the Banking Industry and Economic Growth.” Macroeconomic Dynamics, 9, 2.
Demirgüç-Kunt A. and Maksimovic V., 1998. “Law, Finance, and Firm Growth.” Journal of Finance, 53, 6, 2107-2137.
Demirgüç-Kunt A. and Levine R., 2000. “Bank Concentration: Cross-Country Evidence.” World Bank Working Paper, 27828.
Demirgüç-Kunt A., 2006. “Finance and Economic Development : Policy Choices for Developing Countries.” Policy Research Working Paper Series 3955, The World Bank.
Djankov S., McLiesh C. and Shleifer A., 2007. “Private Credit in 129 Countries.” Journal of Financial Economics, 84, 2, 299-329.
Eschenbach F., 2004. “Finance and Growth: A Survey of the Theoretical and Empirical Literature.” Tinbergen Institute Discussion Paper no. TI 2004- 039/2.
Fishman R. and Sarria-Allende V., 2004. “Regulation of Entry and the Distortion of Industrial Organization.” NBER Working Paper no. 10929.
Gerschenkron A., 1965. Economic backwardness in historical perspective. Praeger: New York, NY.
Goldsmith R.W., 1969. Financial structure and development. Yale University Press: New Haven CT.
Guzman M.G., 2000. “The Economic Impact of Bank Structure: a Review of Recent Literature.” Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q2, 11-25.
Hannan T., 1991. “Foundations of the Structure-Conduct-Performance Paradigm in Banking.” Journal of Finance, 23, 1, 68-84.
Jayaratne J. and Strahan P.E., 1998. “Entry Restrictions, Industry Evolution, and Dynamic Efficiency: Evidence from Commercial Banking.” Journal of Law & Economics, 41, 1, 239-273.
King R. G. and Levine R., 1993a. “Finance and Growth: Schumpeter Might Be Right.” Quarterly Journal of Economics, 108, 3, 717-737.
King R. G. and Levine R., 1993b. “Finance, Entrepreneurship, and Growth: Theory and Evidence.” Journal of Monetary Economics, 32, 3, 513-542.
Klingebiel D., Kroszner R. S. and, Laeven L., 2007. “Banking Crises, Financial Dependence, and Growth.” Journal of Financial Economics, 84, 1, 187-228.
La Porta R., Lopez-de-Silanes F., Shleifer A. and Vishny R. W., 1997. “Legal Determinants of External Finance.” Journal of Finance, 52, 3, 1131-50.
La Porta R., Lopez-de-Silanes F., Shleifer A. and Vishny R.W., 1998. “Law and Finance.” Journal of Political Economy, 106, 6, 1113-1155.
Levine R., Loayza N. and Beck T., 2000. “Financial Intermediation and Growth: Causality and Causes.” Journal of Monetary Economics, 46, 1, 31-77.
Levine R. 2005. “Finance and Growth: Theory and Evidence”, in Aghion P. and Durlauf S. (ed.), Handbook of Economic Growth, ed. 1, 865-934, Elsevier.
Levine R. and Zervos S., 1998. “Capital Control Liberalization and Stock Market Development.” World Development, 26, 7, 1169-1183.
Mayer C., 1990. “Financial Systems, Corporate Finance and Economic Development”, in Hubbard R.G. (eds.) Asymmetric information, corporate finance and investment, The University of Chicago Press: Chicago, IL.
Pagano M., 1993. “Financial Markets and Growth: An Overview.” European Economic Review, 37, 2-3, 613-622. Papaioannou E., 2007. “Finance and Growth - a Macroeconomic Assessment of the Evidence from a European Angle.” Working Paper Series 787, European Central Bank.
Petersen M.A. and Rajan R., 1995. “The Effect of Credit Market Competition on Lending Relationships.” Quarterly Journal of Economics, 110, 2, 407-443.
Rajan R. and Zingales L., 1998. “Financial Dependence and Growth.” American Economic Review, 88, 3, 559-586.
Shumpeter J.A., 1912. The theory of economic development. Harvard University Press: Cambridge MA.
Spagnolo G., 2001. “Debt as a (Credible) Collusive Device.” Working Paper in Economics and Finance No. 243, Stockholm School of Economics
Sylla R., 1969. “Federal Policy, Banking Market Structure and Capital Mobilization in the United States.” Journal of Economic History, 29, 657-686.
Wooldridge, 2001. Econometric Analysis of Cross Section and Panel Data. MIT Press: Cambridge, MA.