Regional Financial Development and Bank Competition: Effects on Firms' Growth
Juan Fernandez de Guevara and
Joaquin Maudos ()
Authors registered in the RePEc Author Service: Juan Fernández-de-Guevara ()
MPRA Paper from University Library of Munich, Germany
Abstract:
This paper analyzes the effect of regional financial development and bank competition on firms’ growth using the Spanish provinces as a testing ground. Our results show that firms in industries with a greater dependence on external finance grow faster in more financially developed provinces. The results also show that bank monopoly power has an inverted-U effect on firms’ growth, suggesting that market power has its highest effect at intermediate values. The effect is heterogeneous among firms according to the financial dependence of the industry they belong to. This result is consistent with the literature on relationship banking which argues that bank competition can have a negative effect on the availability of finance for more informationally opaque firms.
Keywords: economic growth; regional financial development; bank competition (search for similar items in EconPapers)
JEL-codes: D40 G21 L11 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-ban, nep-com, nep-cse, nep-fdg, nep-geo and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)
Published in Regional Studies 2.43(2009): pp. 211-228
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/15256/1/MPRA_paper_15256.pdf original version (application/pdf)
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:pra:mprapa:15256
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().