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Credit, Venture Capital And Regional Economic Growth

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  • Barbara Pistoresi
  • Valeria Venturelli

Abstract

In this paper we investigate the relationship between finance and regional economic growth. The dataset consists of a panel of 53 regions belonging to three countries, Germany, Italy and Spain, for the period 1995-2008. To avoid a problem of endogeneity, we estimate a dynamic panel using the generalised method of moments (GMM). The results underline the important role played by bank lending in regional economic growth. The distinction between mutual and commercial credit suggests that both types of bank are important for regional growth but the role of mutual banks is greater in economically deprived areas [EDAs]. Similar results are obtained for the venture capital variable

Suggested Citation

  • Barbara Pistoresi & Valeria Venturelli, 2012. "Credit, Venture Capital And Regional Economic Growth," Department of Economics 0680, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    • Handle: RePEc:mod:depeco:0680
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    File URL: http://www.dep.unimore.it/materiali_discussione/0680.pdf
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    References listed on IDEAS

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    Cited by:

    1. Michele Cincera & Anabela Marques Santos, 2015. "Innovation and Access to Finance – A Review of the Literature," Working Papers TIMES² 2015-16, ULB -- Universite Libre de Bruxelles.
    2. Michele Cincera & Anabela Santos, "undated". "Innovation and Access to Finance," IRMO Occasional Papers 6, Institute for Development and International Relations, Zagreb.
    3. Mario Augusto Caetano Joao & Abreu Monteiro de Castro, 2023. "The Impact of Agricultural Credit on the Growth of the Agricultural Sector in Angola," Sustainability, MDPI, vol. 15(20), pages 1-14, October.

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    More about this item

    Keywords

    regional economic growth; relationship lending; venture capital; economically deprived areas; dynamic panel techniques;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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