This paper investigates whether local banking market structure affects regional entrepreneurship,measured by newfirm formation. Considering provincial data over the period 2011–21 in Italy, wefound that bank concentration andfirm formation had an inverted‘U’-shaped relationship. Lowerlevels of bank concentration fosteredfirm formation, but above a market share of about 58% for thelargest banks, which is seen in the South and some peripheral and inner areas of central and northernItaly, increased concentration reducedfirm formation. However, the presence of local banks is beneficialfor the birth of newfirms and can reduce the negative impact of high concentration. Thesefindingssuggest that banking market structure plays an important role in shaping regional entrepreneurship.
Regional entrepreneurship and the structure of the banking market / Moccia, S.; Pennacchio, L.. - In: REGIONAL STUDIES, REGIONAL SCIENCE. - ISSN 2168-1376. - 10:1(2023), pp. 394-417. [10.1080/21681376.2023.2186804]
Regional entrepreneurship and the structure of the banking market
Moccia S.;
2023
Abstract
This paper investigates whether local banking market structure affects regional entrepreneurship,measured by newfirm formation. Considering provincial data over the period 2011–21 in Italy, wefound that bank concentration andfirm formation had an inverted‘U’-shaped relationship. Lowerlevels of bank concentration fosteredfirm formation, but above a market share of about 58% for thelargest banks, which is seen in the South and some peripheral and inner areas of central and northernItaly, increased concentration reducedfirm formation. However, the presence of local banks is beneficialfor the birth of newfirms and can reduce the negative impact of high concentration. Thesefindingssuggest that banking market structure plays an important role in shaping regional entrepreneurship.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
