Life-cycle dynamics in industrial sectors. The role of banking market structure

Nicola Cetorelli

No WP-02-26, Working Paper Series from Federal Reserve Bank of Chicago

Abstract: This paper analyzes the role of bank competition on the life-cycle dynamics of non-financial industries. Using multi-dimensional data sets, which contain information on job creation and destruction for establishments in U.S. manufacturing sectors operating in different geographical regions and over time, I find evidence that bank competition accelerates the expansion of start-ups and helps them to thrive while young. Once these establishments are mature, however, less competitive banking markets are more propitious. Specifically, mature establishments expand at higher rates and exit the industry at a slower pace in less competitive banking markets.

Keywords: Bank competition; Banking market; Manufactures (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-com, nep-ent and nep-ind
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Citations: View citations in EconPapers (13)

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Journal Article: Life-cycle dynamics in industrial sectors: the role of banking market structure (2003)
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