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Introduction and summary

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Theoretical arguments

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Multiple eff ects of bankingmarket structure

Empirical evidence

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Evidence on multi ple eff ects of bankingmarket structure

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New dimensions of analysis

Government ownership

Regulatory restrictions

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Bank concentration and concentrati on inother sectors

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TABLE 1

Low bank High bank

c on ce nt r at i on c on ce nt r at i on(- - - - - - dollars in millions - - - - - -)

Low externaldependence +24.59 +12.30

High externaldependence +6.75 +5.16

Notes: Low external financial dependence sectors arebelow the median of the external financial dependencedistribution. High external financial dependence sectorsare above the median of the external financial dependencedistribution. Similarly, low bank concentration countries havea bank concentration measure below the median, while highconcentration countries have a concentration measureabove the median. The numbers in the table are meanvalues across sectors of average firm size for each of thefour clusters.

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24.59

3.646.75

12.30 2.45.16

Conclusion

TABLE 2

Low bank High bankc on ce nt r at i on c on ce nt r at i on

Low externaldependence +2.69 2.99

High externaldependence 2.47 +2.78

Notes: Low and high external financial dependence sectorsand low and high bank concentration countries are asdefined in table 1. The numbers in the table are meanvalues, calculated for each of the four clusters, of theresiduals of a regression of average firm size on industryand country dummies.

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