This paper examines the relationship between local banking sector development and manufacturing. Using a unique data set consisting of districtlevel data from India, this paper explores the relationship between the availability of local credit and the growth of the manufacturing sector in the district. Using panel data and a generalised method of moments (GMM) model, the results provide support for the view thatfinancial development at the local level is important for the growth of manufacturing in the region.
展开▼