Cooperative banks and local economic growth

This paper analyses the impact of cooperative banks on local economic development. Italian municipality data indicate that cooperative banks - more than conventional banks - are associated with enhanced income, employment and firms' growth rates. This evidence is consistent with several other studies indicating a distinct role of cooperative banks in supporting traditional credit provision to local borrowers.

Automated summary

The study indicates that cooperative banks have a positive impact on local economies, leading to increased income, employment, and firms' growth rates. This is consistent with other research findings that cooperative banks play a unique role in supporting traditional credit provision to local borrowers.