Local banking and manufacturing growth: Evidence from India

Document Type

Article

Publication Title

IIMB Management Review

Abstract

This paper explores the relationship between local banking development and the growth of the manufacturing sector using district-level data from India. The results show that banking development at the local level is important for the growth of manufacturing in the region. We find that sector-specific credit, and not the total credit in the district, has a positive impact on local manufacturing output||suggesting that sector-specific lending technology is important. Further, we find that the constraints due to credit availability for manufacturing are lower in districts with higher literacy levels.

Publication Date

1-6-2021

Publisher

Elsevier

Volume

Vol.33

Issue

Iss.2

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