Munich Personal RePEc Archive

Credit Unions, Consolidation and Business Formation: Evidence from Canadian provinces

Morgan, Horatio M. (2013): Credit Unions, Consolidation and Business Formation: Evidence from Canadian provinces.

WarningThere is a more recent version of this item available.
[img]
Preview
PDF
MPRA_paper_52327.pdf

Download (651kB) | Preview

Abstract

This study empirically evaluates the impact of consolidation activity in the credit union system on the rate of business formation. Drawing on Canadian provincial-level data over the period 1992-2009, it provides evidence which suggests that consolidation activity is unlikely to hurt business formation in the absence of intense competition in the credit market. Specifically, a unit increase in credit union assets per working-age (15-64) individual has a negative, but negligible effect on the rate of business formation. However, the intensification of competition in the credit union system may increase the magnitude of this negative effect. These findings may inform the formulation of small business and entrepreneurship policies. In particular, they suggest that competition policies on the banking sector warrant greater attention as consolidation activity unfolds in the credit union system.

Available Versions of this Item

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.