How Important Are Banks for Development? National Banks in the United States, 1870-1900

• 成果类型: Article
• 署名作者: Fulford, Scott L.
• 署名单位: Boston College
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00546
• 发表日期: 2015-12
• 页码: 921-938
• 关键词: regression discontinuity designs; financial development; market structure; GROWTH; INEQUALITY; matter; rates

摘要

Do banks matter for growth, and if so, how? This paper examines the effects of national banks in the United States from 1870 to 1900. I use the discontinuity in entry caused by a large minimum size requirement to identify the effects of banking. For the counties on the margin between getting a bank and not, gaining a bank increased production per person by 10%. National banks in rural areas improved agriculture over manufacturing, moving counties toward geographic comparative advantage. Since these banks made few long-term loans, the evidence suggests that the provision of working capital and liquidity matters for growth.