Journal ArticleDOI
Job Growth and Finance: Are Some Financial Institutions Better Suited to the Early Stages of Development than Others?
Robert Cull,L. Colin Xu +1 more
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This paper found that labor growth is swifter in countries with a higher level of private credit/gross domestic product; the positive effect of bank credit is especially pronounced in industries that depend heavily on external finance; and banking development is positively associated with more physical and human capital investment.Abstract:
This paper combines firm-level data from 89 countries with updated country-level data on financial structure, and uses two estimation approaches. It finds that in low-income countries, labor growth is swifter in countries with a higher level of private credit/gross domestic product; the positive effect of bank credit is especially pronounced in industries that depend heavily on external finance; and banking development is positively associated with more physical and human capital investment. These findings are consistent with predictions from new structural economics. In high-income countries, labor growth rates are increasing in the level of stock market capitalization, which is also consistent with predictions from new structural economics, although the analysis is unable to provide evidence that the association is causal. It finds no evidence that small-scale firms in low-income countries benefit most from private credit market development. Rather, the labor growth rates of larger, capital-intensive firms increase more with the level of private credit market development, a finding consistent with the history-based political economy view that banking systems in low-income countries serve the interests of the elite, rather than providing broad-based access to financial services.read more
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Book
New Structural Economics
TL;DR: In this paper, the authors propose a new structural economics framework to complement previous approaches in the search for sustainable growth strategies, which takes the following into consideration: an economy's structure of factor endowments evolves from one level of development to another.
BookDOI
Access to finance and job growth : firm-level evidence across developing countries
TL;DR: In this article, the authors investigated the effect of access to finance on job growth in 50,000 firms across 70 developing countries, using the introduction of credit bureaus as an exogenous shock to the supply of credit.
Journal ArticleDOI
Examining the relationship between finance, institutions and economic growth: evidence from the ASEAN economies
TL;DR: In this paper, the authors investigated the role of financial and institutional development on economic growth in the Association of Southeast Asian Nations (ASEAN) economies from 1995 to 2017 using a dynamic panel estimator.
Journal ArticleDOI
Does economic structure determine financial structure
TL;DR: In this paper, the authors examined the relationship between the structure of the real economy and a country's financial system and found that changes in the economic structure of a country influence the evolution of its financial system.
Dissertation
The relationship between financial system development and economic growth in the Egyptian economy
TL;DR: In this article, the authors investigated the relationship and causality direction between financial development and economic growth by using a vector error correction model (VECM) in which the banking sector and the stock market were modeled explicitly and simultaneously, and investigated the long-run and short-run association between financial liberalisation; financial development; interest rate behavior; and savings and investment.
References
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Econometric Analysis of Cross Section and Panel Data
TL;DR: This is the essential companion to Jeffrey Wooldridge's widely-used graduate text Econometric Analysis of Cross Section and Panel Data (MIT Press, 2001).
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Journal ArticleDOI
Does Social Capital Have an Economic Payoff? A Cross-Country Investigation
Stephen Knack,Philip Keefer +1 more
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ReportDOI
Financial Dependence and Growth
Raghuram G. Rajan,Raghuram G. Rajan,Raghuram G. Rajan,Luigi Zingales,Luigi Zingales,Luigi Zingales +5 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms, and found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
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