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Financial sector development

About: Financial sector development is a research topic. Over the lifetime, 1674 publications have been published within this topic receiving 90787 citations.


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Journal ArticleDOI
TL;DR: In this article, the authors analyse how regional financial and economic differences influence the capital structure decisions of small and medium-sized enterprises (SMEs) and conclude that these regional differences in the degree of financial sector development, banking concentration, and local economic situations have a significant impact on the leverage level of SMEs, while the cost of obtaining funds is only relevant during a period of economic stability.
Abstract: The objective of this article is to analyse how regional financial and economic differences influence the capital structure decisions of small and medium-sized enterprises (SMEs). Specifically, this paper considers the regional financial and economic differences in four ways: the development of the financial sector in the region, bank market concentration, the financial cost of obtaining funds, and regional economic development. For this purpose, we used unbalanced panel data from 26,504 SMEs across the 20 Italian regions and over the period from 2004 to 2010. This work is completed with an analysis of a no-crisis (2004–2007) and a crisis period (2008–2010). The results show that the regional differences in the degree of financial sector development, banking concentration, and local economic situations have a significant impact on the leverage level of SMEs, while the cost of obtaining funds is only relevant during a period of economic stability. These results suggest that insights can be derived from data disaggregation at the regional level inside the same country. These regional divergences in the capital structure of SMEs could influence regional economic resilience.

6 citations

01 Apr 2013
TL;DR: The authors examines the trends and prospects in financial sector development and integration in the southern and eastern Mediterranean countries and concludes with an agenda for a long-term sustainable transition where finance turns to be a positive stimulus to longterm growth.
Abstract: This MEDPRO Policy Paper examines the trends and prospects in financial-sector development and integration in the southern and eastern Mediterranean countries and concludes with an agenda for a long-term sustainable transition where finance turns to be a positive stimulus to long-term growth.

6 citations

Journal ArticleDOI
TL;DR: In this article, the authors emphasize that more caution is needed in directing overseas development aid (ODA) towards climate change mitigation and adaptation due to the links between various macroeconomic variables related to growth and poverty reduction.
Abstract: There is an urgent need to mainstream the key challenges of climate change into sector and development planning and decision making processes to create sustainable long-term development. Empirical results in this study emphasize that more caution is needed in directing overseas development aid (ODA) towards climate change mitigation and adaptation due to the links between various macroeconomic variables related to growth and poverty reduction.

6 citations

Posted Content
TL;DR: In this article, a snapshot of the evolution of Indian financial system along with its progress and performance by making use of various proxy variables of financial development was provided by using time series data from 1991-91 to 2012-13 period and using three proxy variables viz.
Abstract: Financial systems play a crucial role in the economic development of a country. There is sufficient economic literature which reveals that a well functioning financial system increases economic efficiency, investment and growth. This paper provides a snapshot of the evolution of Indian financial system along with its progress and performance by making use of various proxy variables of financial development. It also attempts to examine the the relationship between the financial development and growth in Indian context. By using time series data from1991-91 to2012-13 period and using three proxy variables viz.GDP per capita for economic growth of India, M2 to GDP ratio and ratio of stock market capitalization to GDP for measuring the extent of financial deepening in India and utilizing regression technique, the empirical findings very clearly point towards the existence of strong relationship between financial deepening(FD) and EG. The paper also shows the extent of financial deepening of markets in India vis-a vis other Asia Pacific economies. The analysis reveals that the Indian financial sector has undergone far reaching changes over three and half decades as a result of financial sector reforms. Consequently, the widening and deepening of financial system has allowed greater and more productive investment to occur. Financial intermediation has increased over time, which in turn is leading to a virtuous cycle of higher savings, improved investment efficiency and higher real economic growth. However, there are several challenges in the financial sector in the form of increasing non-performing assets (or bad loans) of the banks and underdeveloped corporate bond market. These challenges need attention and require policy intervention.

6 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202357
202279
202155
202093
201991
201888