The territorial gaps in the access of Italian firms to credit

Carlo Bottoni (), Michele Cascarano, Iconio Garrì (), Litterio Mirenda, Paolo Emilio Mistrulli, Dalia Maria Pizzillo (), Davide Revelli () and Tiziano Ropele
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Carlo Bottoni: Bank of Italy
Iconio Garrì: Bank of Italy
Dalia Maria Pizzillo: Bank of Italy
Davide Revelli: Bank of Italy

No 710, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The work analyzes the territorial divides in the access to credit for Italian firms in the period 2010-2019. As already documented by previous studies, the econometric analysis shows that, after controlling for a bunch of characteristics, Southern firms provide more frequently a collateral and face a higher cost of credit (by about 70 basis points, on average) than in the Center North. The conditions of access to credit affect loan demand, which is lower among Southern firms. Negative externalities, which are more marked in Southern Italy, such as the inefficiency of justice, the spread of crime and the lack of social capital, contribute to explaining part of the observed gaps.

Keywords: territorial gaps; access to credit; cost of credit (search for similar items in EconPapers)
JEL-codes: G21 R11 (search for similar items in EconPapers)
Date: 2022-07
New Economics Papers: this item is included in nep-cfn, nep-sbm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_710_22

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