Does bank competition spur firm innovation?

Peisen Liu and Houjian Li

Journal of Applied Economics, 2020, vol. 23, issue 1, 519-538

Abstract: For transition economies, the virtues of financial development for economic growth are obvious; however, bank competition has dubious effects due to various firm characteristics. This study uses Chinese banking and firm data from 1998 to 2011 to examine how bank competition affects firm innovation and how firm size and ownership influence the effects of bank competition. The results show that bank competition promotes firm-level innovation and that this positive effect is stronger for small firms and non-state-owned enterprises (non-SOEs). In addition, bank competition has a more beneficial influence on innovation for transparent firms and domestic firms. These conclusions thus shed light on the real effects of bank competition and the determinants of firm innovation in developing countries.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1080/15140326.2020.1806001 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:recsxx:v:23:y:2020:i:1:p:519-538

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/recs20

DOI: 10.1080/15140326.2020.1806001

Access Statistics for this article

Journal of Applied Economics is currently edited by Jorge M. Streb

More articles in Journal of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().