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Financial Markets And Twentieth Century Industrialization: Evidence From U.s. And Canadian Steel Producers

Author

Listed:
  • Angela Redish

    (Department of Economics, University of British Columbia)

  • Ian Keay

Abstract

Despite the diverse and developed nature of twentieth century U.S. and Canadian financial markets, the history of both economies is replete with claims of inefficiency and inadequacy among financial intermediaries, particularly the banking sectors. In Canada it has been argued that banks were oligopolistic and favoured an entrenched merchant class over industrialists. In the U.S. the unit banking system has been perceived as unstable and of an inefficiently small scale. This paper examines the experiences of a set of firms from a large and economically important manufacturing industry; primary steel production; in an effort to determine the impact differences in macro financial markets have had on micro financial decision making. We find statistically significant, but not necessarily economically important, relationships among national capital market characteristics, firms' financing decisions, and firms' capital costs.

Suggested Citation

  • Angela Redish & Ian Keay, 2002. "Financial Markets And Twentieth Century Industrialization: Evidence From U.s. And Canadian Steel Producers," Working Paper 1003, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1003
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1003.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Kris Inwood & Ian Keay, 2013. "Trade policy and industrial development: iron and steel in a small open economy, 1870−1913," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(4), pages 1265-1294, November.

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    More about this item

    Keywords

    Capital Market Development; North American Industrialization; Financial Intermediation;
    All these keywords.

    JEL classification:

    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • N62 - Economic History - - Manufacturing and Construction - - - U.S.; Canada: 1913-
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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