Bank Market Power, Factor Reallocation, and Aggregate Growth
R. Inklaar, Michael Koetter, Felix Noth
Journal of Financial Stability,
2015
Abstract
Using a unique firm-level sample of approximately 700,000 firm-year observations of German small and medium-sized enterprises (SMEs), this study seeks to identify the effect of bank market power on aggregate growth components. We test for a pre-crisis sample whether bank market power spurs or hinders the reallocation of resources across informationally opaque firms. Identification relies on the dependence on external finance in each industry and the regional demarcation of regional banking markets in Germany. The results show that bank markups spur aggregate SME growth, primarily through technical change and the reallocation of resources. Banks seem to need sufficient markups to generate the necessary private information to allocate financial funds efficiently.
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Cross-border Interbank Networks, Banking Risk and Contagion
Lena Tonzer
Journal of Financial Stability,
2015
Abstract
Recent events have highlighted the role of cross-border linkages between banking systems in transmitting local developments across national borders. This paper analyzes whether international linkages in interbank markets affect the stability of interconnected banking systems and channel financial distress within a network consisting of banking systems of the main advanced countries for the period 1994–2012. Methodologically, I use a spatial modeling approach to test for spillovers in cross-border interbank markets. The results suggest that foreign exposures in banking play a significant role in channeling banking risk: I find that countries that are linked through foreign borrowing or lending positions to more stable banking systems abroad are significantly affected by positive spillover effects. From a policy point of view, this implies that in stable times, linkages in the banking system can be beneficial, while they have to be taken with caution in times of financial turmoil affecting the whole system.
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Post-transition Regions as Locations for Foreign Direct Investment of Multinational Enterprises
Andrea Gauselmann
Hochschulschrift, Juristische und Wirtschaftswissenschaftliche Fakultät der Martin-Luther-Universität Halle-Wittenberg,
2014
Abstract
Multinationale Unternehmen investieren im Ausland, um von standortspezifischen Vorteilen zu profitieren und ihre eigene Wettbewerbsfähigkeit zu verbesser. Gleichzeitig tragen sie zu einer Steigerung der Produktivität und einem wirtschaftlichen Aufholprozess am ausländischen Standort bei. Sie fungieren in diesem Sinne als Treiber für technologische und wirtschaftliche Entwicklung. Das Ziel der Dissertation ist es, einen Beitrag zur aktuellen Forschung zu leisten, indem untersucht wird, durch welche Determinanten ausländische Investoren bei der Standortwahl in den europäischen Post-Transformationsregionen beeinflusst werden, welche Motive sie bei ihrer Investition verfolgen, wie sie die Qualität der Standortfaktoren vor Ort beurteilen und unter welchen Bedingungen ein Austausch von Wissen und Technologie zwischen den ausländischen Tochterunternehmen und den Akteuren der einheimischen Wirtschaft stattfindet.
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Plant-based Bioeconomy in Central Germany - Mapping of Actors, Industries and Places
Wilfried Ehrenfeld, Frieder Kropfhäußer
Abstract
The challenges facing the 21st century, presented by a growing global population, range from food security to sustainable energy supplies to the diminishing availability of fossil raw materials. An attempt to solve these problems is made by using the concept of bioeconomy. Plants, in particular, possess an important function in this context - they can be used either as a source of food or, in the form of biomass, for industrial or energy purposes. Linking industrial and agricultural research and production, bioeconomy provides growth potential, in particular in rural areas.
The aim of this article is therefore to outline the status of plant-based bioeconomy
in three states of Central Germany - Saxony, Saxony-Anhalt and Thuringia - and to compare this to German plant-based bioeconomy. We take an in-depth look at the different sectors and outline the industries involved, the location and age of the enterprises as well as the distribution of important NACE codes. In conclusion, we highlight the significant number of new or small enterprises and the high research and innovation rate of Central Germany. We also stress the future potential of Central German plant-based bioeconomy as well as the importance of a more plant-focusedview of the technology sector.
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The Impact of Institutional and Social Characteristics on Foreign Direct Investment: Evidence from Japan
Stefan Eichler, Alexander Karmann, N. Lucke
Annals of Financial Economics,
Nr. 2,
2013
Abstract
We examine the determinants of Japanese foreign direct investment (FDI) focusing on institutional and social factors. Using panel data on 59 countries from 1995 to 2008, we find that host countries with free and open markets and greater cultural distance from Japan attract Japanese FDI. Good institutions, such as a well-developed legal framework and an effective government, are important in promoting Japanese FDI to emerging economies, whereas fewer regulatory restrictions, lower tax burden, and more religious diversity attract Japanese FDI to developed countries. We find that corruption stimulates Japanese FDI to developed countries, which is contrary to most previous research.
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Banking Market Competition, Opaque Firms, and the Reallocation Component of Aggregate Growth
R. Inklaar, Michael Koetter, Felix Noth
Abstract
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5. Konferenz „Analysen und Politik für Ostdeutschland – aus der Forschung des IWH“ – ein Bericht
Gerhard Heimpold, Marie Ebert
Wirtschaft im Wandel,
Nr. 2,
2012
Abstract
Der Beitrag berichtet über den Inhalt der Tagung „Analysen und Politik für Ostdeutschland – aus der Forschung des IWH“ am 21. September 2011, die – wie bereits die vier Vorgängerveranstaltungen seit 2007 – ein wirtschaftspolitisches Fachpublikum mit neuen Forschungsergebnissen des IWH vertraut machte. Im ersten Teil der Tagung lag, beginnend mit dem Eröffnungsvortrag der Ministerin für Wissenschaft und Wirtschaft des Landes Sachsen-Anhalt, Prof. Dr. Birgitta Wolff, der thematische Schwerpunkt bei Fragen der Innovationsförderung, des Technologietransfers und der Wissensflüsse. Diese Faktoren gelten – nicht nur in Ostdeutschland – als wichtig für die wirtschaftliche Konvergenz oder Divergenz von Regionen. Anschließend wurden auf der makroökonomischen Ebene Faktoren analysiert, die das Wirtschaftswachstum in Ostdeutschland beeinflussen. Es folgte ein Beitrag über die Effekte des Programms „Stadtumbau Ost“ für den Immobilienmarkt, bei dem Wirkungen von Abriss- und Aufwertungsmaßnahmen untersucht worden waren. Der abschließende Beitrag hatte die künftige Ausgestaltung der EU-Strukturpolitik zum Gegenstand, die bislang die wirtschaftliche Entwicklung in den Neuen Ländern massiv unterstützt hat.
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Finance and Growth in a Bank-Based Economy: Is It Quantity or Quality that Matters?
Michael Koetter, Michael Wedow
Journal of International Money and Finance,
Nr. 8,
2010
Abstract
Most finance–growth studies approximate the size of financial systems rather than the quality of intermediation to explain economic growth differentials. Furthermore, the neglect of systematic differences in cross-country studies could drive the result that finance matters. We suggest a measure of bank’s intermediation quality using bank-specific efficiency estimates and focus on the regions of one economy only: Germany. This quality measure has a significantly positive effect on growth. This result is robust to the exclusion of banks operating in multiple regions, controlling for the proximity of financial markets, when distinguishing different banking sectors active in Germany, and when excluding the structurally weaker East from the sample.
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Regional Growth and Finance in Europe: Is there a Quality Effect of Bank Efficiency?
Iftekhar Hasan, Michael Koetter, Michael Wedow
Journal of Banking & Finance,
Nr. 8,
2009
Abstract
In this study, we test whether regional growth in 11 European countries depends on financial development and suggest the use of cost- and profit-efficiency estimates as quality measures of financial institutions. Contrary to the usual quantitative proxies of financial development, the quality of financial institutions is measured in this study as the relative ability of banks to intermediate funds. An improvement in bank efficiency spurs five times more regional growth then an identical increase in credit does. More credit provided by efficient banks exerts an independent growth effect in addition to direct quantity and quality channel effects.
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