John (Jianqiu) Bai
D’Amore-McKim School of Business
Institutional Affiliation: Northeastern University
NBER Working Papers and Publications
|November 2017||The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity|
with Daniel Carvalho, Gordon M. Phillips: w24081
We provide evidence that the deregulation of U.S. state banking markets leads to a significant increase in the relative employment and capital growth of local firms with higher productivity and that this effect is concentrated among young firms. Using financial data for a broad range of firms, our analysis suggests that this effect is driven by a shift in the composition of local bank credit supply towards more productive firms. We estimate that this effect translates into economically important gains in aggregate industry productivity and that changes in the allocation of labor play a central role in driving these gains.
Published: JOHN JIANQIU BAI & DANIEL CARVALHO & GORDON M. PHILLIPS, 2018. "The Impact of Bank Credit on Labor Reallocation and Aggregate Industry Productivity," The Journal of Finance, vol 73(6), pages 2787-2836. citation courtesy of