01703cas a2200241 a 4500 AALejournalIMF001373 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451843910 1018-5941 BD-DhAAL BD-DhAAL Dell'Ariccia, Giovanni. Bank Competition and Firm Creation / Giovanni Dell'Ariccia. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (39 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the empirical relationship between competition in the financial sector and the creation of firms in the non-financial sector. It finds that bank competition has an overall positive effect on firm creation. However, consistent with theories of banking arguing that competition may reduce the availability of credit to informationally opaque firms, it also finds that asymmetric information limits the overall positive effect of bank competition on firm creation. Indeed, bank competition is less favorable to the emergence of new firms in industrial sectors where informational asymmetries are more important, and in extreme cases has a negative effect. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2001/021 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/021/001.2001.issue-021-en.xml IMF e-Library