Understanding the Finance–Growth Nexus from a Multidimensional Perspective

Abstract

This paper discusses the multidimensional nature of banking development and its effects on economic growth. Previous studies focused on the quantity dimension and overlooked other dimensions of banking development, which may have led to serious omitted variable bias in exploring the determinants of economic growth. However, incorporating other dimensions, such as banking efficiency, into growth models has proven to be a challenging task. More efforts are needed to construct indicators that can be used to proxy banking development in a more inclusive, precise, and consistent manner in future studies. JEL Code: G21; O16; O47

How Does Emissions Trading Affect the Efficiency of Enterprise Resource Allocation? Evidence From China

“…However, due to the influence of environmental regulation policies under government intervention, enterprises may have a distorted resource allocation structure when allocating factor production resources (Elizabeth & Audia, 2020). From the perspective of market-oriented environmental regulation policy, the external emission trading system can affect the resource allocation structure and efficiency by changing the internal factor investment of enterprises (Xu et al, 2022). A perfect marketoriented environmental regulation system can effectively mobilize enterprises to participate in transactions, strengthen the allocation of factors, improve the decision-making mechanism, and expand financing channels, to optimize the efficiency of enterprise resource allocation, accelerate the frequency of capital turnover and promote economic growth.…”

“…Market oriented environmental regulation policies realizes the internalization of emission reduction costs of related enterprises, which may affect their investment and management decisions, but has seldom received attention (Y. J. . However, in the long term, the emission trading system can stimulate enterprises to improve pollution control technology and production technology through compliance pressure and economic compensation effect (Dong & Wang, 2021;Liu & Sun, 2021;Lv & Bai, 2021;Xu et al, 2022;H. Zhang et al, 2022) and compensate for pollution control costs by improving resource allocation efficiency (Qi et al, 2018).…”

Financial Institutions Dynamics, Investments and Development

“…Additionally, it is important to point out that unlike most related studies that examine the role of financial institutions in economic growth (Kaushal & Ghosh, 2016; Rateiwa & Aziakpono, 2017; Xu, 2022), this study rather reviews the extent to which key features of financial institutions (not the performance of such institutions) influence development as defined by HDI. This approach has the potential to provide a much broader scope of assessment of the discourse on how financial institutions influence development.…”

Does Bankruptcy Reforms Enhance Firm Performances for Politically Connected Firms? Evidence from India

“…In certain situations, politically connected firms get easy bailouts or external financing during critical times (Blau et al, 2013; Faccio, 2006). However, firms without political proximity (Xu, 2022) find it challenging to survive in the event of near bankruptcy. Policymakers and regulatory bodies in every country strive to design bankruptcy resolutions, also called “bankruptcy codes,” to create a platform for all firms to address financial constraints.…”