Growth, productivity and capital accumulation: The effects of financial liberalization in the case of European integration

Gehringer, Agnieszka

doi:10.1016/j.iref.2012.07.015

Cited by 106 publications

(61 citation statements)

References 62 publications

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“…Lane and Milesi-Ferretti (2007) develop a broadly used measure of de facto financial liberalization that, however, ends in 2004 and does not therefore cover several years in our observation sample. For a discussion on the advantages and drawbacks of using a de jure and non de facto measure of financial integration, see Kose et al (2009) and Gehringer (2013. 13 The inequality reducing effect of technological change is also confirmed in estimations excluding control variables.…”

Section: Direction Of Technological Change and The Skill Contentmentioning

confidence: 87%

Technological change, rent and income inequalities: A Schumpeterian approach

Antonelli

Gehringer

2017

Technological Forecasting and Social Change

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Increasing levels of income inequality have recently attracted much attention. The literature has concentrated on the hypothesis that increasing levels of income inequality are the cause of slow growth and social unbalances. This paper contributes to exploring an alternative hypothesis according to which increasing levels of income inequality are the consequence, rather than the cause, of slow growth and more specifically of the slowing pace of technological change. The paper articulates the Schumpeterian hypothesis that the rate of technological change exerts a significant influence in reducing income distribution. Due to the powerful effects of creative destruction, the rate of technological change engenders a reduction in wealth and rent inequalities that are highly skewed and, consequently, limits income inequality. We test this hypothesis in an empirical exercise by implementing quantile regressions on a large dataset of advanced and industrializing economies. The inequality diminishing effect of technological change holds along the entire income inequality distribution, but exhibits larger effects in countries where the concentration of wealth and, consequently, income asymmetries are stronger. These results have novel welfare implications and suggest some crucial insights for economic policy analysis.

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Section: Direction Of Technological Change and The Skill Contentmentioning

confidence: 87%

Technological change, rent and income inequalities: A Schumpeterian approach

Antonelli

Gehringer

2017

Technological Forecasting and Social Change

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“…The empirical strategy employed in this study is based on the literature on the finance‐growth nexus (Levine et al , ; Beck et al , ), and is augmented with economic union in line with some studies on the integration‐growth nexus (Conti, ; Gehringer, ) as follows:

Y_{i, t} = β_{1} F D_{i, t} + β_{2} E M U_{i, t} + δ false' Z_{i, t} + η_{i} + μ_{t} + ε_{i, t}

where Y = economic growth, FD = financial development, EMU = dummy for economic union that takes the value of 1 from the year economic union was established and 0 otherwise, Z = set of control variables (such as government consumption expenditure relative to GDP, trade openness relative to GDP, human capital and inflation rate),

η_{i}

= unobserved country‐specific effect,

μ_{t}

= time specific‐effect,

ε_{i, t}

= independent and identically distributed error term.…”

Section: Methodology and Datamentioning

confidence: 99%

“…Furthermore, to examine both the direct and indirect effects of economic union on economic growth, the study included both economic union and the interaction term in the following model (Gehringer, ):

Y_{i, t} = ϕ_{1} F D_{i, t} + ϕ_{2} E M U_{i, t} + ϕ_{3} false(F D_{i, t} * E M U_{i, t} false) + δ' Z_{i, t} + η_{i} + μ_{t} + ε_{i, t}

…”

Section: Methodology and Datamentioning

confidence: 99%

“…Gao () reported that economic integration increases FDI, expands R&D activity in the industrial core, and enhances world growth rate. Gehringer () also showed that EU membership and financial openness have a strong positive impact on productivity growth, capital accumulation and economic growth. Besides, Konig () revealed that European economic integration accelerates countries’ convergence process, and country size has a correlation with economic growth in 27 EU member countries, whereas Mann () showed that integration has small but significant medium‐run effects on growth in 10 central and eastern European countries.…”

Section: Literature Reviewmentioning

confidence: 99%

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Economic Union, Finance and Growth: A Prognosis in West Africa

Ehigiamusoe¹

2019

African Development Review

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This paper compares the impact of financial development on economic growth in the Union Économique et Monetaire Ouest Africaine (UEMOA) and non-UEMOA countries. It also examines the finance-growth nexus before and after the formation of UEMOA, as well as the indirect effect of economic union on economic growth through the financial sector. The study reveals a significant difference in the finance-growth nexus between UEMOA and non-UEMOA countries. Specifically, financial development has a robust positive impact on growth in UEMOA countries, while the impact is tenuous in non-UEMOA countries. However, we find no remarkable difference in the finance-growth nexus before and after the formation of UEMOA. We also reveal that economic union has no robust indirect effect on economic growth via the financial sector. The economic implication is that UEMOA could have economic benefits, but financial development is not a channel through which it influences growth. Therefore, it is necessary to reposition the union so that it can enhance the impact of finance on growth.

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“…Its advocates emphasize the positive effects it has on economic growth by increasing credit availability and improving investment allocation (Bekaert et al, 2005;Galindo et al, 2007;Gehringer, 2013). Its opponents highlight that financial liberalization increases risks and, therefore, financial fragility (Kaminsky and Reinhart, 1999).…”

Section: Introductionmentioning

confidence: 99%

Banking liberalization and firms' debt structure: International evidence

González

2014

International Review of Economics & Finance

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This paper analyzes the effect of banking liberalization on debt structure in a sample of firms in 37 developed and developing countries. Banking liberalization increases on average debt availability and reduces its maturity. Debt availability increases in countries with stronger supervision and lower protection of creditor and property rights. The reduction in debt maturity is greater in developed countries. The effect of banking liberalization also varies across firm size. Small firms in developed countries and large firms in developing countries benefit least from banking liberalization.

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Growth, productivity and capital accumulation: The effects of financial liberalization in the case of European integration

Cited by 106 publications

References 62 publications

Technological change, rent and income inequalities: A Schumpeterian approach

Technological change, rent and income inequalities: A Schumpeterian approach

Economic Union, Finance and Growth: A Prognosis in West Africa

Banking liberalization and firms' debt structure: International evidence

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