Financial Structure Does Matter for Industrial Growth: Direct Evidence from OECD Countries

Binh, Ki Beom; Park, Sang Yong; Shin, Bo Sung

doi:10.2139/ssrn.891044

Cited by 13 publications

(9 citation statements)

References 20 publications

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“…Additionally, they find that the financial structure has an impact on industrial growth and on R&D investment. Those findings are consistent with Binh et al (2006). Rioja and Valev (2011) do not confirm that the financial structure affects economic growth; however, they find that a bank-based financial system is associated with stronger physical capital accumulation.…”

Section: The Real Economy and Finance Nexusmentioning

confidence: 62%

Does economic structure determine financial structure?

Allen

Bartiloro

et al. 2018

Journal of International Economics

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In this paper, we examine the relationship between the structure of the real economy and a country's financial system. We consider whether the development of the real economic structure can predict the direction of evolution of a country's financial structure. Using data for 108 countries, we find a significant relationship between real economic structure and financial structure. Next, we exploit shocks to the economies in India, Finland and Sweden, and South Korea and show that changes in the economic structure of a country influence the evolution of its financial system. This suggests that financial institutions and capital markets change in response to the structure of industries.

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Section: The Real Economy and Finance Nexusmentioning

confidence: 62%

Does economic structure determine financial structure?

Allen

Bartiloro

et al. 2018

Journal of International Economics

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“…In particular, Korea's largely bank-based financial system is an ideal setting for an experiment on the validity of the cooperative banking channel. Although Korea is usually ranked high on most financial development measures (Demirguc-Kunt and Levine, 2004), it has been argued that the Korean financial system is heavily skewed toward the banking sector (Binh et al, 2006). For instance, stocks comprise less than 10% of Korean households' financial assets, while bank deposits make up more than 50%.…”

Section: Cooperative Banking Channelmentioning

confidence: 99%

Social Capital and Firm Innovation: Evidence from Cooperative Banking in Korea*

Yoon

2021

Asia-Pac J of Fin Stud

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This study investigates the link between social capital and firm innovation by examining the cooperative banking channel in Korea. Social capital has a positive impact on the activities of cooperative banks, thus fostering innovation in regional firms. We first confirm a positive association between social capital and firm innovation in Korea and find that firms located in provinces with higher social capital innovate more. We then show that social capital positively influences firm innovation mainly through the cooperative banking channel. Further, we demonstrate that the cooperative banking channel is more pronounced in regions where cooperative banks are riskier, human capital is less, and commercial banking is less developed.

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“…Aghion believes that the agglomeration and development of the financial industry can effectively support and promote the advancement of technology, thereby promoting the upgrading of industrial structure [3]. Through multiple regression, Binh found that if the financial agglomeration is higher, it will help the emerging technology industries with higher R&D risks to obtain funds, thus promoting the development of emerging technology industries and promoting the upgrading of industrial structure [4].…”

Section: Literature Reviewmentioning

confidence: 99%

“…if there is a single threshold effect, a single threshold panel model (3) is established. If there is a double threshold or even multiple threshold effects, a double threshold model (4) is a random disturbance term with independent and identical distribution properties.…”

Section: Model Constructionmentioning

confidence: 99%

The Impact of Financial Agglomeration on Industrial Structure Upgrading--An Empirical Analysis Based on Threshold Effect

Yan¹

2019

Proceedings of the 5th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2019)

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Financial agglomeration is an important factor influencing the upgrading of industrial structure. This paper uses financial agglomeration as a threshold variable, and uses the panel data of 30 provinces in China from 2006 to 2016 to study the impact of financial agglomeration on industrial structure upgrading. The study found that there is not a simple linear relationship between financial agglomeration and industrial structure upgrading. Financial agglomeration has a significant single threshold effect on industrial structure upgrading. When financial agglomeration is below the threshold, financial agglomeration has a stronger role in promoting the upgrading of industrial structure; when the financial agglomeration exceeds the threshold, this promotion will be weakened.

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Financial Structure Does Matter for Industrial Growth: Direct Evidence from OECD Countries

Cited by 13 publications

References 20 publications

Does economic structure determine financial structure?

Does economic structure determine financial structure?

Social Capital and Firm Innovation: Evidence from Cooperative Banking in Korea*

The Impact of Financial Agglomeration on Industrial Structure Upgrading--An Empirical Analysis Based on Threshold Effect

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