Bank lending, ´credit crunch´ and local economic output
| Reference number | |
| Coordinator | KUNGLIGA TEKNISKA HÖGSKOLAN - Centrum för bank och finans |
| Funding from Vinnova | SEK 970 000 |
| Project duration | December 2012 - December 2015 |
| Status | Completed |
Purpose and goal
(1) to analyze the relationship between per capita income, business operations and labor, on the other hand, the local financial infrastructure. (2) to estimate the causal link between regional employment and regional characteristics such as human capital, corporate and financial infrastructure. (3) to estimate the relationship between the local financial infrastructure and house prices. (4) to analyze the relationship between house prices and business operations. (5) to analyze the relationship between house prices and business operations in different industries.
Results and expected effects
(1) a positive correlation between banks´ local presence and regional economic growth. (2) stronger in medium-sized cities. (3) reduced effect since 2000. (4) the presence of banks is positively correlated with entrepreneurship and low unemployment. (5) a positive correlation between employment growth and a local financial infrastructure. (6) a positive link between credit and house prices and a positive relationship between house prices and Entrepreneurship, measured in the number of new companies. (7) stronger effect in the services and construction sectors than in industry.
Approach and implementation
All studies are econometric studies which mainly data at municipal level has been utilized. Some models have estimated with panel data, while others have used cross-sectional data. Where appropriate, where endogeniteten been prominent models have estimated using instrumental variables.