Impact of Institutional Quality on Financial Development: Cross-Country Evidence based on Emerging and Growth-Leading Economies

Khan, Muhammad Asif; Kong, Dongmin; Xiang, Junyi; Zhang, Jian

doi:10.1080/1540496x.2019.1588725

Cited by 77 publications

(67 citation statements)

References 63 publications

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“…It signifies that better quality of institutions significantly encourage export in domestic economy. This empirical results negate the claim of Khan et al (2019) that institutional quality does not contribute to export in South Asian economies. Furthermore, it can be seen in lower half of Table 3, that in short run most of independent variables are insignificant except aggregate infrastructure (ln_GINFRA) is significant in both short as well as in the long run.…”

Section: Empirical Results and Discussioncontrasting

confidence: 76%

Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index

Rehman

Noman

Ding

2020

Economic Structures

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Structuralists consider that availability of infrastructure plays important role in markets connectivity and trade promotion while the lack of infrastructure disrupts markets and retards trade. Infrastructure makes a huge difference in the process of development and the comparative edge of an economy, particularly in trade (Ahmad et al. 2015; Anderson and Wincoop 2003). Researchers estimated that poor infrastructure penalize international trade (Donaubauer et al. 2018; Yeaple and Golub 2002). Countries with better infrastructure (such as Singapore and Hong Kong) perform well in international trade and punch above their weight while countries with weak infrastructure (such as Bhutan and Pakistan) perform poor on external sector

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Section: Empirical Results and Discussioncontrasting

confidence: 76%

Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index

Rehman

Noman

Ding

2020

Economic Structures

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“…Given the vital role of finance in economic sustainability, the study adds invaluable inputs for policy formulation [59,60], specifically, the findings appear to be important for potential investors, as the firm-level financial information is more relevant to their decision, rather relying on an index. Specifically, we infer that the negative interaction of IHR with MHR results in a bullish trend to the stock markets, while the bearish trend is explained by the positive interaction of IHR and MHR.…”

Section: Discussionmentioning

confidence: 99%

Does Herding Bias Drive the Firm Value? Evidence from the Chinese Equity Market

et al. 2019

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Equity markets play a pivotal role in the sustainability of developing countries, such as China. The literature on the detection of herding biases is confined to the aggregate level (firms, sector/industry and market). The present study adds to the behavioral finance literature by addressing the surprisingly unnoticed phenomena of the behavioral impact of herding bias on firm value (FV) at the firm level, using the sample of A-Shares listed firms at the Shanghai and Shenzhen Stock Exchanges (SSE and SZSE) under panel fixed effect specification. Initially, we detect the existence of investors and managers herding (IHR and MHR) biases at firm-level, and later, we examine their impact (distinct and interactive) upon the FV. The empirical results document the presence of IHR and MHR bias at market, sector and firm-level in both equity markets, which potentially drive the FV, while the impact is more pronounced during the extreme trading period. The findings are robust under different time intervals, and industry classification, therefore, offers useful policy implications to understand the behavioral dynamics of investors and managers.

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“…Institutions are the backbone of economic and financial sustainability [20,21,30,31], and after the influential work of Balaguer and Cantavella-Jorda [32], several studies (e.g., [33][34][35][36][37][38][39][40]) have emphasized the economic and institutional factors responsible for tourism inflow. Emphasizing the streamlining of the economy hypothesis, several studies have discussed the growth-tourism nexus while considering the factors of income, exchange rates, and tourism prices.…”

Section: Brief Literature Review On Institutional Quality and Tourismmentioning

confidence: 99%

Asymmetric Impact of Institutional Quality on Tourism Inflows Among Selected Asian Pacific Countries

et al. 2020

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From an idealistic viewpoint, the existence of the tourism industry in a country/region is a blessing because of its anticipated sustainable economic benefits. To turn this idealistic state into a realistic one, institutions need to play a pivotal role in optimizing the desired incentives. The present study examines the asymmetric role of institutional quality in stimulating tourism inflows (receipts and arrivals) in selected Asia Pacific countries involved in tourism. The previous literature has established that improving institutional quality attracts tourism inflows to a destination. However, the literature fails to identify the specific point (threshold level) above (below) which the relationship turns positive (negative). To the best of our knowledge, this is the first study that estimates the asymmetries in the nexus of institutions and tourism inflows, using robust nonlinear autoregressive distributed lag approach. Our results show that the tourism inflow in Asian Pacific countries responds asymmetrically to any changes in institutional quality, and there is a single threshold of 7.52 points, where the impact of institutional quality reverses. We conclude that our findings are robust to the alternative measures of tourism inflows. The study offers useful policy inputs for devising short and long-run policies for the betterment of the institutional framework in the region by understanding the asymmetric impact of institutional quality on tourism inflow.

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Impact of Institutional Quality on Financial Development: Cross-Country Evidence based on Emerging and Growth-Leading Economies

Cited by 77 publications

References 63 publications

Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index

Does infrastructure increase exports and reduce trade deficit? Evidence from selected South Asian countries using a new Global Infrastructure Index

Does Herding Bias Drive the Firm Value? Evidence from the Chinese Equity Market

Asymmetric Impact of Institutional Quality on Tourism Inflows Among Selected Asian Pacific Countries

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