Job Growth and Finance : Are Some Financial Institutions Better Suited to the Early Stages of Development than Others?

doi:10.1093/wber/lhs050

Publication:
Job Growth and Finance : Are Some Financial Institutions Better Suited to the Early Stages of Development than Others?

creativeworkseries.issn	1564-698X
dc.contributor.author	Cull, Robert
dc.contributor.author	L. Colin, Xu
dc.date.accessioned	2015-03-19T14:23:24Z
dc.date.available	2015-03-19T14:23:24Z
dc.date.issued	2013-09
dc.description.abstract	Evidence based on firm-level data from 89 countries with updated country-level data on financial structure suggests that in low-income countries; labor growth is more rapid in countries with a higher level of private credit/GDP. This positive relationship with private credit is especially pronounced in industries that depend heavily on external finance. The results, which are robust to multiple estimation approaches, are consistent with the predictions of new structural economics. In high-income countries, labor growth rates increase with the level of stock market capitalization, consistent with predictions from new structural economics. However, the association disappears when stock market development is treated as an endogenous explanatory variable using instrumental variable regressions. There is no evidence that small-scale firms in low-income countries benefit the most from the development of the private credit market. Rather, the labor growth rates of larger firms increase to a greater extent than others with the level of private credit market development, a finding consistent with the perspective from historical political economy that banking systems in low-income countries serve the interests of the elite rather than providing broad-based access to financial services.	en
dc.identifier.citation	World Bank Economic Review
dc.identifier.doi	10.1596/21621
dc.identifier.issn	1564-698X
dc.identifier.uri	https://hdl.handle.net/10986/21621
dc.language.iso	en_US
dc.publisher	Oxford University Press on behalf of the World Bank
dc.relation.ispartofseries	World Bank Economic Review
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject	financial system
dc.subject	financial institutions
dc.subject	financial structure
dc.subject	financial development
dc.subject	credit market
dc.subject	information asymmetries
dc.subject	political economy
dc.subject	stock market
dc.subject	market capitalization
dc.title	Job Growth and Finance : Are Some Financial Institutions Better Suited to the Early Stages of Development than Others?	en
dc.type	Journal Article	en
dc.type	Article de journal	fr
dc.type	Artículo de revista	es
dspace.entity.type	Publication
okr.date.disclosure	2015-03-19
okr.date.doiregistration	2025-05-06T11:28:26.486175Z
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Journal Article
okr.globalpractice	Finance and Markets
okr.identifier.doi	10.1093/wber/lhs050
okr.journal.nbpages	542-72
okr.language.supported	en
okr.peerreview	Academic Peer Review
okr.topic	Finance and Financial Sector Development::Access to Finance
okr.topic	Finance and Financial Sector Development::Banks & Banking Reform
okr.topic	Finance and Financial Sector Development::Debt Markets
okr.topic	Finance and Financial Sector Development::Finance and Development
okr.topic	Finance and Financial Sector Development::Financial Intermediation
okr.topic	Finance and Financial Sector Development::Financial Structures
okr.topic	Poverty Reduction::Pro-Poor Growth
okr.topic	Private Sector Development::Emerging Markets
okr.volume	27(3)
relation.isJournalIssueOfPublication	85c3309e-74c5-46c0-8d3d-5b25192c5062
relation.isJournalIssueOfPublication.latestForDiscovery	85c3309e-74c5-46c0-8d3d-5b25192c5062
relation.isJournalOfPublication	c41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication	2b992401-bedc-42a8-a16e-c3b0e6e8cb9e