Bank Market Structure, Property Rights and Financial Freedom Effects on Capital Structure: Evidence from Asian Developing Countries

Dereeper, Sébastien; Trinh, Quoc Dat

doi:10.2139/ssrn.2660819

Cited by 1 publication

(2 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…One is that developed financial systems mobilize savings, reduce transaction and control costs and facilitate risk diversification and the acquisition of information on investment projects; therefore, financial systems not only increase the level of investment but also improve its composition towards more productive projects. Hence, policies adopted by countries to reform and develop their financial systems could increase firms' access to finance, which, in turn, will foster the production of complex and sophisticated products (Ebireri, 2014). On the other hand, as FD relaxes firms' liquidity constraints and enhances their ability to export, a country's export basket is likely to become more diversified.…”

Section: Introductionmentioning

confidence: 99%

“…If financial liberalization and banking sector expansion impede technological progress, as heterodox theories suggest, the sophistication of a country's export basket may decline. Moreover, as financing is directed towards activities in which the country is already competitive, diversification of the export basket is hampered (Ebireri, 2014).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Financial development and economic complexity: The role of country stability

Ndoya,

Ongo Nkoa,

Kemeze

et al. 2023

Econ of Transit and Inst Chang

View full text Add to dashboard Cite

The aim of this paper is to examine the relationships between financial development (FD), economic complexity and country stability. To achieve this objective, this paper applies a finite mixture model to a sample of 92 developing countries over the period 1995–2018. The study posits that the effect of FD on economic complexity differs across groups of countries with similar but unobserved characteristics. The study finds that the effect of FD on economic complexity varies across four classes of countries, which differ according to their level of economic, political and financial stability. Furthermore, the study argues that stable countries are more likely to be in class 1, including more performing countries – that is, the group of countries where FD spurs economic complexity. This finding remains consistent even when alternative measures of FD and economic complexity are considered. Hence, efforts by developing countries to undertake sound reforms to reduce economic, political and financial risks could help leverage the benefits of FD in fostering the development of sophisticated and complex economies.

show abstract

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%