Bank market power,factor reallocation,and aggregate growth |
| |
| Institution: | 1. University of Groningen, Faculty of Economics and Business, P.O. Box 800, 9700 AV Groningen, The Netherlands;2. Frankfurt School of Finance and Management, Sonnemannstraße 9–11, 60314 Frankfurt a.M., Germany;3. Otto-von-Guericke University, Universitätsplatz 2, P.O. Box 4120, 39114 Magdeburg, Germany;4. Halle Institute for Economic Research (IWH), P.O. Box 110361, 06017 Halle, Germany;1. Central Bank of Brazil Setor Bancário Sul (SBS), Quadra 3 Bloco B—Ed. Sede, 70074-900 Brasília, DF, Brazil;2. Escola de Administração de Empresas de São Paulo, Fundação Getúlio Vargas, Av. Nove de Julho 2029, 01313-010 São Paulo, SP, Brazil;1. Borsa Istanbul, Research & Business Development Department, 34467 Emirgan, Istanbul, Turkey;2. Odeabank, Strategic Planning Department, 34394 Sisli, Istanbul, Turkey;3. Abdullah Gul University, Department of Business Administration, 38080 Kayseri, Turkey;4. CNPq Foundation, Brasilia, DF, Brazil;5. Department of Economics, Universidade Catolica de Brasilia, SGAN 916, Modulo B Avenida W5, CEP 70790-160 Brasilia, DF, Brazil;1. Banco de México, Mexico;2. Tudor Investment Corporation, USA;1. Bank of Greece, Greece;2. University of Leicester, United Kingdom; Bank of Greece, Greece;3. Bank of Greece, 21 E Venizelos Ave, Athens 10250, Greece; University of Leicester, United Kingdom;1. German Institute for Economic Research (DIW Berlin), Germany;2. Otto-von-Guericke University Magdeburg, Germany;3. Halle Institute for Economic Research (IWH), Germany;4. Johannes Gutenberg University Mainz, Germany;5. Research Center SAFE at Goethe University Frankfurt, Germany |
| |
| Abstract: | Using a unique firm-level sample of approximately 700,000 firm-year observations of German small and medium-sized enterprises (SMEs), this study seeks to identify the effect of bank market power on aggregate growth components. We test for a pre-crisis sample whether bank market power spurs or hinders the reallocation of resources across informationally opaque firms. Identification relies on the dependence on external finance in each industry and the regional demarcation of regional banking markets in Germany. The results show that bank markups spur aggregate SME growth, primarily through technical change and the reallocation of resources. Banks seem to need sufficient markups to generate the necessary private information to allocate financial funds efficiently. |
| |
| Keywords: | Growth decomposition Reallocation Banking Market power |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
