Life-Cycle Dynamics in Industrial Sectors. The Role of Banking Market Structure
Federal Reserve Bank of New York
FRB of Chicago Working Paper No. 2002-26
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.
Number of Pages in PDF File: 38
Date posted: February 24, 2003
© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo7 in 0.265 seconds