The impact of financial development on innovation-based exports: Do all firms benefit equally?

Natural resources, financial development and structural transformation in Sub-Saharan Africa

“…To provide a theoretical framework, Saborowski [ 13 ] hypothesizes that a developed financial system restricts capital inflows into low-productivity sectors like construction and mining, thus mitigating the structural consequences of the Dutch disease. Choi [ 39 ] argues that it alleviates credit constraints, leading to resource reallocation that stimulates activity in more innovative industries. Beck [ 40 ] hypothesizes that it leverages economies of scale to create a competitive advantage in manufacturing and the tradable sector, compensating for technological differences.…”

“…The provision of financial services is facilitated by a network of financial institutions and markets [ 39 ]. Furthermore, the nature of the system can be described using three parameters: the depth of the system, which encompasses its size and liquidity resulting from the mobilization and allocation of financial resources; the capacity to expand access to financial resources; and its resource allocation efficiency [ 39 ]. Choi [ 39 ] demonstrates that, in addition to increasing the system's depth, enhancing its efficiency plays a vital role in scaling productivity.…”

“…Furthermore, the nature of the system can be described using three parameters: the depth of the system, which encompasses its size and liquidity resulting from the mobilization and allocation of financial resources; the capacity to expand access to financial resources; and its resource allocation efficiency [ 39 ]. Choi [ 39 ] demonstrates that, in addition to increasing the system's depth, enhancing its efficiency plays a vital role in scaling productivity. It enables the flow of capital to industries with high growth potential and fosters investment in sectors that drive structural transformation.…”

“…Alagidede et al [ 48 ] approached the analysis from the standpoint of globalization, discovering that from 1985 to 2015, international financial flows increased the output value of the primary and tertiary sectors while generating insignificant activity in the secondary sectors in SSA. Using Taiwanese firm-level data from 1990 to 2016, Choi [ 39 ] showed that financial development favourably skews aggregate output towards the more productive sectors by reducing credit constraints of innovation-based enterprises. In another study, Hasanov et al [ 36 ] showed that deepening financial systems' credit allocation to the private sector significantly mitigates the resource curse symptoms in Azerbaijan and Kazakhstan by increasing the output of the non-oil sectors.…”

Management of International Trade in the Context of Ensuring Innovative Development

“…The authors also propose a new theory on how countries can identify core features to enhance the dynamic stages in areas critical to their social well-being. The impact of COVID-19 on the reformatting of emphases in the conduct of international trade is also reflected in the works of Wu et al (2022) The essence of the connection between international trade and countries' financial development level is revealed in a scientific article by Choi (2023). On the example of companies of various levels that conduct their activities in Taiwan, a study was conducted on how much the level of the country's financial development affects the production capacity of companies operating in the foreign market.…”