Liu, P., Peng, Y., Shi, Y. et al. (1 more author) (2022) Financial structures, political risk and economic growth. The European Journal of Finance, 28 (4-5). pp. 356-376. ISSN 1351-847X
Abstract
Using a panel of 113 countries over the period from 1990 to 2013, this paper provides new empirical evidence to the intensive debate of whether financial structure is relevant for economic growth. Specifically, we evaluate the role of political risk, development stage and their interactions with the structure of the financial system. We find that on average a more market-based financial system is associated with a higher level of economic growth. This impact varies with different levels of political risk and different stages of economic development. Specifically, the comparative development of equity markets compared with banks appear to promote more economic growth in countries with lower political risk and at a better stage of economic development. Moreover, banks are more important to economic growth in over-market-based financial systems, whilst equity markets are more sensitive to economic growth in over-bank-based financial systems. Our paper provides new insights into the real effects of the mixture of banks and markets on the economy.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Informa UK Limited, trading as Taylor & Francis Group. This is an author-produced version of a paper subsequently published in European Journal of Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Financial structure; Political risk; Economic development |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 09 Aug 2021 09:55 |
Last Modified: | 08 Aug 2022 00:13 |
Status: | Published |
Publisher: | Taylor & Francis |
Refereed: | Yes |
Identification Number: | 10.1080/1351847x.2021.1879888 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:176872 |