Working Paper: NBER ID: w11695
Authors: Robert Cull; Lance E. Davis; Naomi R. Lamoreaux; Jean-Laurent Rosenthal
Abstract: We focus on the economies of the North Atlantic Core during the nineteenth and early twentieth centuries and find that an impressive variety of local financial institutions emerged to supply the needs of SMEs wherever there was sufficient demand for their services. Although these intermediaries had significant weaknesses, they were able to tap into local information networks and so extend credit to firms that were too young or small to secure funds from large regional or national institutions. In addition, by raising the return to savings for local households, they helped to mobilize significant new resources for economic development.
Keywords: No keywords provided
JEL Codes: G2; N2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Demand for financial services (G20) | Local financial institutions (G21) |
| Local financial institutions (G21) | Access to credit for SMEs (E69) |
| Demand for credit (E51) | Access to credit for SMEs (E69) |
| Local financial institutions (G21) | Mobilization of savings from local households (D14) |