Ayyagari, MeghanaDemirguc-Kunt, AsliMaksimovic, Vojislav2014-10-022014-10-022014-08https://hdl.handle.net/10986/20349The differences in financial development across Indian states, while seeming substantial, have a minor effect on firm lifecycle and growth. These results hold controlling for differences in labor regulations across states, capital intensity, and for firms born before and after the major reforms. There is no evidence that firms in financially dependent industries have different lifecycle profiles or grow faster in financially developed states than underdeveloped states. Overall, firms in the formal manufacturing sector grow as they age whereas in the informal sector, firms have a declining lifecycle, but in both cases little evidence is found that financial institutions matter for firm lifecycle. The findings of this paper suggest that size and depth differences in financial development across Indian states are likely dwarfed by overall inefficiencies that characterize state-dominated financial systems, with important implications for the reforms of the Indian financial system going forward.en-USCC BY 3.0 IGOACCESS TO BANKINGACCESS TO BANKING SERVICESACCOUNTINGAGE GROUPAGE GROUPSBANK BRANCHBANK BRANCHESBANK CREDITBANK FINANCINGBANKING REFORMBANKING REGULATIONBANKING SECTORBANKING SERVICESBANKING SYSTEMBANKING SYSTEMSBANKSBRANCHBRANCHESBUSINESS ENVIRONMENTBUSINESS ENVIRONMENTSCAPITAL EXPENDITURESCAPITAL MARKETCASH FLOWCHAMBERS OF COMMERCECOMMERCIAL BANKCOMMERCIAL BANKSCOMPANYCORPORATE ACQUISITIONSCORPORATE FINANCECORPORATE GOVERNANCECORPORATIONSCORRUPTIONCREDIT ALLOCATIONDEBTDEPOSITDEPOSIT INSURANCEDEPOSITSDEVELOPMENT ECONOMICSDIVERSIFICATIONDIVIDEND POLICYECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICIESECONOMIC POLICYECONOMIC REFORMSECONOMIC SUCCESSECONOMICSEDUCATION LEVELEMPLOYEEEMPLOYEREMPLOYMENTEMPLOYMENT DYNAMICSEMPLOYMENT LEVELSEMPLOYMENT PROTECTION LEGISLATIONENTREPRENEURIAL ACTIVITYENTREPRENEURSHIPEXPANSIONEXTERNAL FINANCEEXTERNAL FINANCINGFINANCIAL ACCESSFINANCIAL DEPTHFINANCIAL DEVELOPMENTFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL MARKETSFINANCIAL OUTREACHFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR REFORMSFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL SYSTEMSFIRM GROWTHFIRM PERFORMANCEFIRM SIZEFIRM SIZE DISTRIBUTIONFIRMSFLEXIBLE LABOR MARKETSFOREIGN BANKSFORMAL FINANCIAL INSTITUTIONGROWTH OPPORTUNITIESINCOMEINDUSTRY CHARACTERISTICSINEQUALITYINFLEXIBLE LABORINFORMAL FINANCEINFORMAL SECTORINTERNATIONAL BANKJOB CREATIONLABOR FORCELABOR INTENSITYLABOR LAWSLABOR MARKET INSTITUTIONSLABOR MARKET OUTCOMESLABOR MARKET REGULATIONLABOR MARKET REGULATIONSLABOR MARKETSLABOR PRODUCTIVITYLABOR REGULATIONLABOR REGULATIONSLABOURLABOUR MARKETLABOUR MARKET REGULATIONLAWSLEGISLATIONLENDING DECISIONSLICENSINGLINES OF CREDITMACROECONOMICSMANUFACTURING INDUSTRIESMARKET LIBERALIZATIONMERCHANTSMIGRATIONMULTIPLIER EFFECTNATIONALIZED BANKSNEW BUSINESSESOUTPUTSPLANT SIZEPRIVATE BANKSPRIVATE CREDITPRIVATE EQUITYPRIVATE SECTORPRIVATE SECTOR BANKSPRODUCT MARKETSPRODUCTION PROCESSPRODUCTIVITYPROFITABILITYREGIONAL RURAL BANKSRESERVE BANK OF INDIARIGID LABOR MARKETSIZE OF FIRMSSMALL BUSINESSSMALL BUSINESS FINANCESMALL ENTERPRISESSMALL FIRMSMALL FIRMSSOCIAL BANKINGSOCIAL CAPITALSTATE OWNED BANKSSTOCK MARKETSTRADE REFORMSTRANSPORTUNEMPLOYMENTUNIONUNPAID FAMILY WORKERSURBAN AREASVILLAGESWAGESWATER SUPPLYWORKERWORKERS10.1596/1813-9450-7008