Publication:
Financial Development and Financing Constraints : International Evidence from the Structural Investment Model

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dc.contributor.authorLove, Inessa
dc.date.accessioned2014-08-20T19:34:43Z
dc.date.available2014-08-20T19:34:43Z
dc.date.issued2001-10
dc.description.abstractThe relationship between the financial, and real sides of the economy has long been a topic of intense interest, and debate. The author provides microeconomic evidence that financial development aids growth, by reducing financing constraints that would otherwise restrict efficient firm investment. The author estimates a structural model, based on the Euler equation for investment, using firm-level data from forty countries. The results show a strong negative relationship between the extent of financial market development, and the sensitivity of investment, to the availability of internal funds (a proxy for financing constraints). Considering size effects, business cycles, and the legal environment as plausible alternative explanations, the author finds the results to be robust in all cases.en
dc.identifierhttp://documents.worldbank.org/curated/en/2001/10/1615068/financial-development-financing-constraints-international-evidence-structural-investment-model
dc.identifier.doi10.1596/1813-9450-2694
dc.identifier.urihttps://hdl.handle.net/10986/19513
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2694
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectASYMMETRIC INFORMATION
dc.subjectBUSINESS CYCLES
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL ALLOCATION
dc.subjectCAPITAL MARKETS
dc.subjectCAPITALIZATION
dc.subjectCONSTANT RETURNS TO SCALE
dc.subjectCOST OF CAPITAL
dc.subjectDEBT
dc.subjectDEMAND ELASTICITY
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNT RATES
dc.subjectDISCOUNTED VALUE
dc.subjectDIVIDENDS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTCOMES
dc.subjectECONOMICS
dc.subjectECONOMISTS
dc.subjectELASTICITY
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL STUDIES
dc.subjectEXTERNAL FINANCING
dc.subjectFINANCIAL DECISIONS
dc.subjectFINANCIAL INTERMEDIARIES
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFIXED COSTS
dc.subjectFUTURE RESEARCH
dc.subjectGDP
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINTANGIBLE ASSETS
dc.subjectINTEREST RATE
dc.subjectLESS DEVELOPED COUNTRIES
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectM3
dc.subjectMARGINAL COST
dc.subjectMARGINAL PRODUCT
dc.subjectMARGINAL PRODUCTIVITY
dc.subjectMARKET POWER
dc.subjectMARKETABLE SECURITIES
dc.subjectMERGERS
dc.subjectNET WORTH
dc.subjectNPV
dc.subjectOPTIMIZATION
dc.subjectPERFECT COMPETITION
dc.subjectPRESENT VALUE
dc.subjectPRODUCTION FUNCTION
dc.subjectPROFIT MAXIMIZATION
dc.subjectRATIONAL EXPECTATIONS
dc.subjectREGRESSION ANALYSIS
dc.subjectSAVINGS
dc.subjectSECURITIES
dc.subjectTHEORETICAL MODELS
dc.subjectVALUE ADDED
dc.subjectVARIABLE COSTS
dc.titleFinancial Development and Financing Constraints : International Evidence from the Structural Investment Modelen
dspace.entity.typePublication
okr.crossref.titleFinancial Development and Financing Constraints: International Evidence from the Structural Investment Model
okr.date.disclosure2001-10-31
okr.date.doiregistration2025-04-10T09:29:32.751415Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2001/10/1615068/financial-development-financing-constraints-international-evidence-structural-investment-model
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid632521468767093347
okr.identifier.doi10.1596/1813-9450-2694
okr.identifier.externaldocumentum000094946_01110704135740
okr.identifier.internaldocumentum1615068
okr.identifier.reportWPS2694
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/12/11/000094946_01110704135740/Rendered/PDF/multi0page.pdfen
okr.sectorFinancial Sector Development
okr.sectorFinance
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicPublic Sector Development::Decentralization
okr.topicEnvironmental Economics and Policies
okr.topicInternational Terrorism and Counterterrorism
okr.topicPayment Systems and Infrastructure
okr.unitFinance, Development Research Group
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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