Banking Market Structure, Financial Dependence and Growth: International Evidence from Industry Data

Journal of Finance - Tập 56 Số 2 - Trang 617-648 - 2001
Nicola Cetorelli, Michele Gambera1
1Cetorelli is at the Federal Reserve Bank of Chicago and Gambera is at Morningstar, Inc. The paper was written mainly while both authors were at the Federal Reserve Bank of Chicago. We thank the editor, René Stulz, and two anonymous referees for inputs that substantially improved the overall quality of the paper. We have also benefited from the comments of seminar participants at the Federal Reserve Bank of Chicago, Purdue University, Duke University, Loyola University, Ente Einaudi of Rome, Banco Central de Chile, the 1999 Midwest Macro and 1999 Society of Economic Dynamics conferences, the 1999 System Committee on Financial Structure and Regulation, the Wharton School-University of Frankfurt conference on “Bank Competition: Good or Bad?”, the 2000 meetings of the Association of Financial Economists, and the NBER-Universities research conference on the Macroeconomic Effects of Corporate Finance. In particular, we thank Judy Chevalier, Gary Gorton, Norman Loayza, Leonard Nakamura, Marco Pagano, and Oren Sussman for their comments. We also thank Rob Bliss, Doug Evanoff, George Kaufman, Jim Kolari, Robert Marquez, Nara Milanich, Raghu Rajan, Klaus Schmidt-Hebbel, Sherrill Shaffer, Shouyong Shi, and especially David Marshall and Luigi Zingales for fruitful conversations. The views expressed in this paper are those of the authors and do not necessarily reflect official positions of the Federal Reserve Bank of Chicago, the Federal Reserve System, or Morningstar, Inc.

Tóm tắt

ABSTRACTThis paper explores the empirical relevance of banking market structure on growth. There is substantial evidence of a positive relationship between the level of development of the banking sector of an economy and its long‐run output growth. Little is known, however, about the role played by the market structure of the banking sector on the dynamics of capital accumulation. This paper provides evidence that bank concentration promotes the growth of those industrial sectors that are more in need of external finance by facilitating credit access to younger firms. However, we also find evidence of a general depressing effect on growth associated with a concentrated banking industry, which impacts all sectors and all firms indiscriminately.

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Journal of Finance

Tập 56 Số 2

617-648

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