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The territorial gaps in the access of Italian firms to credit

Author

Listed:
  • Carlo Bottoni

    (Bank of Italy)

  • Michele Cascarano

    (Bank of Italy)

  • Iconio Garrì

    (Bank of Italy)

  • Litterio Mirenda

    (Bank of Italy)

  • Paolo Emilio Mistrulli

    (Bank of Italy)

  • Dalia Maria Pizzillo

    (Bank of Italy)

  • Davide Revelli

    (Bank of Italy)

  • Tiziano Ropele

    (Bank of Italy)

Abstract

The work analyzes the territorial divides in the access to credit for Italian firms in the period 2010-2019. As already documented by previous studies, the econometric analysis shows that, after controlling for a bunch of characteristics, Southern firms provide more frequently a collateral and face a higher cost of credit (by about 70 basis points, on average) than in the Center North. The conditions of access to credit affect loan demand, which is lower among Southern firms. Negative externalities, which are more marked in Southern Italy, such as the inefficiency of justice, the spread of crime and the lack of social capital, contribute to explaining part of the observed gaps.

Suggested Citation

  • Carlo Bottoni & Michele Cascarano & Iconio Garrì & Litterio Mirenda & Paolo Emilio Mistrulli & Dalia Maria Pizzillo & Davide Revelli & Tiziano Ropele, 2022. "The territorial gaps in the access of Italian firms to credit," Questioni di Economia e Finanza (Occasional Papers) 710, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_710_22
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2022-0710/QEF_710_22.pdf
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    More about this item

    Keywords

    territorial gaps; access to credit; cost of credit;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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