Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets

Nicola Cetorelli and Philip E. Strahan

No 10832, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper tests how competition in local U.S. banking markets affects the market structure of non-financial sectors. Theory offers competing hypotheses about how competition ought to influence firm entry and access to bank credit by mature firms. The empirical evidence, however, strongly supports the idea that in markets with concentrated banking, potential entrants face greater difficulty gaining access to credit than in markets where banking is more competitive.

JEL-codes: G2 (search for similar items in EconPapers)
Date: 2004-10
New Economics Papers: this item is included in nep-com and nep-fin
Note: CF IO
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Published as Cetorelli, Nicola and Philip E. Strahan. "Finance As A Barrier To Entry: Bank Competition and Industry Structure In Local U.S. Markets," Journal of Finance, 2006, v61(1,Feb), 437-461.

Downloads: (external link)
http://www.nber.org/papers/w10832.pdf (application/pdf)

Related works:
Journal Article: Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets (2006)
Working Paper: Finance as a barrier to entry: bank competition and industry structure in local U.S. markets (2004)
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:nbr:nberwo:10832

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w10832

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().