An empirical analysis on the relationship between regional economy and the business models of regional financial institutions

2016 Fiscal Year Final Research Report

• Project/Area Number: 25380414
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Money/ Finance
• Research Institution: Ritsumeikan University
• Principal Investigator: Harimaya Kozo 立命館大学, 経営学部, 教授 (90347732)
• Project Period (FY): 2013-04-01 – 2017-03-31
• Keywords: 地域金融 / 地域経済 / 競争度 / 効率性

Outline of Final Research Achievements

We have investigated the impact of the degree of bank competition on regional economic growth. In this study, we paid attention to the bank branch network that would reflect the differences in business strategy. Also, we used firm entry and exit rates as the measures indicating the assessment of regional economic conditions. We found that the degree of competition does not relate to higher rates of firm entry and lower rates of firm exit, although slightly changed when using data of different time periods and regions. These main results are consistent with the previous findings that support the effects of relationship banking based on soft information production. Also, these results suggest the significance of regional financial institution that keep branch network in less competitive rural areas.

Free Research Field

地域金融