Do Local Banking Market Structures Matter for SME Financing and Performance? New Evidence from an Emerging Economy
Iftekhar Hasan, Krzysztof Jackowicz, Oskar Kowalewski, Łukasz Kozłowski
Journal of Banking and Finance,
2017
Abstract
This paper investigates the relationship between local banking structures and SMEs’ access to debt and performance. Using a unique dataset on bank branch locations in Poland and firm-, county-, and bank-level data, we conclude that a strong position for local cooperative banks facilitates access to bank financing, lowers financial costs, boosts investments, and favours growth for SMEs. Moreover, counties in which cooperative banks hold a strong position are characterized by a more rapid pace of new firm creation. The opposite effects appear in the majority of cases for local banking markets dominated by foreign-owned banks. Consequently, our findings are important from a policy perspective because they show that foreign bank entry and industry consolidation may raise valid concerns for SME prospects in emerging economies.
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Declining Business Dynamism: What We Know and the Way Forward
Ryan A. Decker, John Haltiwanger, Ron S. Jarmin, Javier Miranda
American Economic Review: Papers and Proceedings,
No. 5,
2016
Abstract
A growing body of evidence indicates that the U.S. economy has become less dynamic in recent years. This trend is evident in declining rates of gross job and worker flows as well as declining rates of entrepreneurship and young firm activity, and the trend is pervasive across industries, regions, and firm size classes. We describe the evidence on these changes in the U.S. economy by reviewing existing research. We then describe new empirical facts about the relationship between establishment-level productivity and employment growth, framing our results in terms of canonical models of firm dynamics and suggesting empirically testable potential explanations.
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Financial Integration, Housing, and Economic Volatility
Elena Loutskina, Philip E. Strahan
Journal of Financial Economics,
No. 1,
2015
Abstract
The Great Recession illustrates the sensitivity of the economy to housing. This paper shows that financial integration, fostered by securitization and nationwide branching, amplified the positive effect of housing price shocks on the economy during the 1994–2006 period. We exploit variation in credit supply subsidies across local markets from government-sponsored enterprises to measure housing price changes unrelated to fundamentals. Using this instrument, we find that house price shocks spur economic growth. The effect is larger in localities more financially integrated, through both secondary loan market and bank branch networks. Financial integration thus raised the effect of collateral shocks on local economies, increasing economic volatility.
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The Regional Distribution of Foreign Investment in Russia: Are Russians more Appealing to Multinationals as Consumers or as Natural Resource Holders?
K. Gonchar, Philipp Marek
Economics of Transition and Institutional Change,
No. 4,
2014
Abstract
This article conducts a plant-level study of the factors affecting foreign direct investment (FDI) inflow to a large opening economy endowed with specific factor advantages. We conclude that the distribution of FDI in Russian regions depends on market access and can be most notably described by the knowledge-capital framework. Factor endowments built by natural resources are more successful in explaining the location decisions of export–platform affiliates. The impact of natural resources depends on how the availability of these resources is measured. The results reject the crowding out effects of resource FDI and prove co-location mode, when service investments are attracted to resource-rich regions. Labour cost advantages better explain the preferences of non-trading service affiliates.
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Die wirtschaftliche Leistung im Lichte von Eigentum und Selbstbestimmung der Unternehmen in Posttransformationsökonomien: Beispiel Ostdeutschland
Udo Ludwig, Brigitte Loose
Wirtschaftlicher Aufholprozess und EU-Integration in Mittel- und Osteuropa – das europäische Wachstumsmodell in der Krise? Transformation. Leipziger Beiträge zu Wirtschaft und Gesellschaft, Bd. 27/28,
2011
Abstract
Die ostdeutsche Industrie erfüllt in starkem Maße Zulieferfunktionen im Wirtschaftskreislauf. Auch hat sich ein großer Teil der Betriebe in auswärtigem Eigentum auf die Herstellung von Produktions- bzw. Vorleistungsgütern spezialisiert. Dies lässt institutionelle Abhängigkeiten von den Mutterunternehmen im Ausland oder im früheren Bundesgebiet vermuten, die sich auch in Leistungsunterschieden zeigen. In der Studie werden die Leistungsunterschiede zwischen den institutionell gegliederten Betriebsgruppen mit bi- und multivariaten statistischen Methoden anhand von Daten des IAB-Betriebspanels untersucht. Es zeigt sich: Ostdeutsche Eigenständler liegen bezüglich der meisten Messgrößen des Leistungsniveaus zurück, holen aber im Hinblick auf die Ertragslage, die Investitionsintensität und die Schaffung von Arbeitsplätzen auf. Die Klassifizierungsergebnisse zeigen dabei die Dominanz der Einteilung nach dem Eigentümerstatus. Unter zusätzlicher Berücksichtigung des Betriebsstatus erhöht sich die Trennschärfe zwischen den Gruppen nicht und die erklärenden Variablen sind ähnlich. Allerdings lässt die Kombination von Eigentümer- und Betriebsstatus die Unterschiede vor allem zwischen den Betrieben einheimischer Eigenständler und auswärtiger Niederlassungen erkennen; die auswärtigen Eigenständler nehmen eine mittlere Stellung ein.
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Economic development cores in East German regions: branch concentrations, company networks and innovative fields of competence of the economy
Martin T. W. Rosenfeld, Peter Franz, Jutta Günther, Gerhard Heimpold, Franz Kronthaler
IWH-Sonderhefte,
No. 5,
2006
Abstract
Der Begriff „Cluster“ ist in jüngster Zeit für die Akteure der Raumentwicklungspolitik auf allen Ebenen des Staates fast zu einer Art Zauberformel zur Beschwörung der Kräfte des regionalen Wirtschaftswachstums geworden. Die Sache hat allerdings mindestens zwei Haken: erstens hat jeder Akteur seine eigene Auffassung von dem, was unter Clustern zu verstehen ist; zweitens besteht ebenfalls keine Einigkeit darüber, mit welchen Strategien die vorhandenen Cluster unterstützt oder neue Cluster entwickelt werden sollten.
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Technology spillovers from external investors in East Germany: no overall effects in favor of domestic firms
Harald Lehmann, Jutta Günther
IWH Discussion Papers,
No. 198,
2004
Abstract
The study deals with the question whether external (foreign and West German) investors in East Germany induce technological spillover effects in favor of domestic firms. It ties in with a number of other econometric spillover studies, especially for transition economies, which show rather mixed and inconclusive results so far. Different from existing spillover analyses, this study allows for a much deeper regional breakdown up to Raumordnungsregionen and uses a branch classification that explicitly considers intermediate and investment good linkages. The regression results show no positive correlation between the presence of external investors and domestic firms’ productivity, no matter which regional breakdown is looked at (East Germany as a whole, federal states, or Raumordnungsregionen). Technology spillovers which may exist in particular cases are obviously not strong enough to increase the domestic firms’ overall productivity.
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Firm-Specific Determinants of Productivity Gaps between East and West German Industrial Branches
Johannes Stephan, Karin Szalai
IWH Discussion Papers,
No. 183,
2003
Abstract
Industrial productivity levels of formerly socialist economies in Central East Europe (including East Germany) are considerably lower than in the more mature Western economies. This research aims at assessing the reasons for lower productivities at the firm level: what are the firm-specific determinants of productivity gaps. To assess this, we have conducted an extensive field study and focussed on a selection of two important manufacturing industries, namely machinery manufacturers and furniture manufacturers, and on the construction industry. Using the data generated in field work, we test a set of determinant-candidates which were derived from theory and prior research in that topic. Our analysis uses the simplest version of the matched-pair approach, in which first hypothesis about relevant productivity level-determinants are tested. In a second step, positively tested hypothesis are further assessed in terms of whether they also constitute firm-specific determinants of the apparent gaps between the firms in our Eastern and such in our Western panels. Our results suggest that the quality of human capital plays an important role in all three industrial branches assessed. Amongst manufacturing firms, networking activities and the use of modern technologies for communication are important reasons for the lower levels of labour productivity in the East. The intensity of long-term strategic planning on behalf of the management turned out to be relevant only for machinery manufacturers. Product and process innovations unexpectedly exhibit an ambiguous picture, as did the extent of specialisation on a small number of products in the firms’ portfolio and the intensity of competition.
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Evolving Structural Patterns in the Enlarging European Division of Labour: Sectoral and Branch Specialisation and the Potentials for Closing the Productivity Gap
Johannes Stephan
IWH-Sonderhefte,
No. 5,
2003
Abstract
This report summarises the results generated in empirical analysis within a larger EU 5th FP RTD-project on the determinants of productivity gaps between the current EU-15 and accession states in Central East Europe. The focus of research in this part of the project is on sectoral specialisation patterns emerging as a result of intensifying integration between the current EU and a selection of six newly acceding economies, namely Estonia, Poland, the Czech and Slovak Republics, Hungary and Slovenia. The research-leading question is concerned with the role played by the respective specialisation patterns for (i) the explanation of observed productivity gaps and for (ii) the projection of future potentials of productivity growth in Central East Europe.
For the aggregated level, analysis determines the share of national productivity gaps accountable to acceding countries’ particular sectoral patterns, and their role for aggregate productivity growth: in Poland, the Slovak Republic and Hungary, sectoral shares of national productivity gaps are considerable and might evolve into a ‘barrier’ to productivity catch-up.Moreover, past productivity growth was dominated by a downward adjustment in employment rather than structural change. With the industrial sector of manufacturing having been identified as the main source of national productivity gaps and growth, the subsequent analysis focuses on the role of industrial specialisation patterns and develops an empirical model to project future productivity growth potentials. Each chapter closes with some policy conclusions.
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Business cycle is not completed; on the cyclical effects of higher plant and equipment spending in the service sector
Thorsten Wichmann
Wirtschaft im Wandel,
No. 5,
1997
Abstract
Eine Betrachtung des konjunkturellen Verhaltens der Ausrüstungsinvestitionen in Westdeutschland von 1960 bis 1993 zeigt, dass der Dienstleistungssektor 1960 nur für gut ein Viertel der Ausrüstungsinvestitionen verantwortlich zeichnete, 1993 aber schon für mehr als die Hälfte. Stark zugenommen hat der Dienstleistungsbeitrag zu den Schwankungen der Wachstumsrate der Ausrüstungsinvestitionen.
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