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

Love, Inessa

World Bank, Washington, DC

关键词: ACCOUNTING;    ASYMMETRIC INFORMATION;    BUSINESS CYCLES;    CAPITAL ACCUMULATION;    CAPITAL ALLOCATION;   

DOI  :  10.1596/1813-9450-2694
RP-ID  :  WPS2694

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The relationship between the financial,and real sides of the economy has long been a topic ofintense interest, and debate. The author providesmicroeconomic evidence that financial development aidsgrowth, by reducing financing constraints that wouldotherwise restrict efficient firm investment. The authorestimates a structural model, based on the Euler equationfor investment, using firm-level data from forty countries.The results show a strong negative relationship between theextent of financial market development, and the sensitivityof investment, to the availability of internal funds (aproxy for financing constraints). Considering size effects,business cycles, and the legal environment as plausiblealternative explanations, the author finds the results to berobust in all cases.