Using a panel of countries this paper investigates the relationship between bank market power and firm creation, which represents a debated issue in the economic literature, still lacking empirical evidence. Employing alternative measures of bank market power and controlling for a set of determinants suggested by the variegate literature on firms’ birth determinants, we find that new business formation may benefit from highly competitive credit markets, as the relationship between new business registrations and bank market power – when statistically significant – appears to be negative. Hence, our evidence seems supporting the competitive position in the debate on the economic role of banking competition.

Bank market power and firm creation: A multi-country analysis

Agostino M.;Trivieri F.
2016

Abstract

Using a panel of countries this paper investigates the relationship between bank market power and firm creation, which represents a debated issue in the economic literature, still lacking empirical evidence. Employing alternative measures of bank market power and controlling for a set of determinants suggested by the variegate literature on firms’ birth determinants, we find that new business formation may benefit from highly competitive credit markets, as the relationship between new business registrations and bank market power – when statistically significant – appears to be negative. Hence, our evidence seems supporting the competitive position in the debate on the economic role of banking competition.
bank market power; firm creation; firm financing; multi-country analysis
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11770/140002
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 2
  • ???jsp.display-item.citation.isi??? 2
social impact