Access to Credit and Economic Complexity: Evidence from Italian Provinces

Roberto Basile; Luisa Giallonardo; Alessandro Girardi; Daniele Mantegazzi

doi:10.1111/jors.12698

Access to Credit and Economic Complexity: Evidence from Italian Provinces

Roberto Basile, Luisa Giallonardo, Alessandro Girardi, Daniele Mantegazzi^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

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Abstract

This paper focuses on the relationship between "urbanization economies" and access to bank credit by assessing the role of urbanization externalities in determining credit crunch episodes. Using quarterly data on Italian provinces for the period 2008-2018 and adopting a dynamic (spatial) econometric approach, the work provides robust evidence highlighting how local economic complexity reduces the intensity of credit crunch phenomena. In the presence of a greater "qualified" diversification (higher economic complexity), banks access successful projects with greater probability and are more willing to grant credit. The estimation results also reveal the existence of long-run spatial spillover effects.

Original language	English
Pages (from-to)	1183-1204
Number of pages	22
Journal	Journal of Regional Science
Volume	64
Issue number	4
Early online date	11-Mar-2022
DOIs	https://doi.org/10.1111/jors.12698
Publication status	Published - Sept-2024
Event	61st ERSA Congress: Disparities in a Digitalising (Post-COVID) world: Networks, entrepreneurship and regional development - Pecs, Hungary Duration: 23-Aug-2022 → 26-Aug-2022

Keywords

Credit crunch
economic complexity
dynamic spatial data models

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10.1111/jors.12698Licence: CC BY

Access to credit and economic complexity: Evidence from Italian provincesFinal publisher's version, 1.23 MBLicence: CC BY

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title = "Access to Credit and Economic Complexity: Evidence from Italian Provinces",

abstract = "This paper focuses on the relationship between {"}urbanization economies{"} and access to bank credit by assessing the role of urbanization externalities in determining credit crunch episodes. Using quarterly data on Italian provinces for the period 2008-2018 and adopting a dynamic (spatial) econometric approach, the work provides robust evidence highlighting how local economic complexity reduces the intensity of credit crunch phenomena. In the presence of a greater {"}qualified{"} diversification (higher economic complexity), banks access successful projects with greater probability and are more willing to grant credit. The estimation results also reveal the existence of long-run spatial spillover effects.",

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AU - Mantegazzi, Daniele

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AB - This paper focuses on the relationship between "urbanization economies" and access to bank credit by assessing the role of urbanization externalities in determining credit crunch episodes. Using quarterly data on Italian provinces for the period 2008-2018 and adopting a dynamic (spatial) econometric approach, the work provides robust evidence highlighting how local economic complexity reduces the intensity of credit crunch phenomena. In the presence of a greater "qualified" diversification (higher economic complexity), banks access successful projects with greater probability and are more willing to grant credit. The estimation results also reveal the existence of long-run spatial spillover effects.

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Y2 - 23 August 2022 through 26 August 2022

ER -

Access to Credit and Economic Complexity: Evidence from Italian Provinces

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