With particular reference to Asia–Pacific countries, the present study examines how access to finance and financial development affects firms’ ability to enter export markets. Using firm‐level data from the World Bank Enterprises Survey, we found that access to finance plays a significant role in improving firms’ ability to export. In addition, development of the financial sector fosters export market entry. Among the financial development indicators, reach of the banking sector variable is most prominent. The present study suggests that improvements in access to finance and financial development (increases in the reach of the banking sector) enable firms operating away from capital or major cities to enter export markets easily. The present study supports policy intervention to strengthen access to the financial sector, which would encourage firms to export, and to facilitate export market entry for remotely located firms.

No abstract

This paper throws a light on the nexus between electronic payments in banking and inflation. Payments for goods and services are made by using different electronic payment modes such as credit cards, debit cards, and electronic transfers. There is a perception that large use of electronic channels for payments has the potential to substitute cash for payments in retail transactions and increase velocity of money by both reducing the transaction costs and enhancing the liquidity of financial assets. An increase in the velocity of money would plausibly inflate general prices that have adverse effect on economic system in the country. In this context, we make an attempt to examine the relationship between electronic payments and inflation in India, using cointegration and error correction framework for the period August 2007 to March 2013. We find that both inflation rate and economic growth lead to electronic payments. Particularly, inflation rate contributed in both short-run and long-run relationship, whereas economic growth has long run association with electronic payments. Electronic payment system has potential to expand further and fulfill the need of the people as it is driven by both inflation and economic growth in India.

No abstract

No abstract