Job Growth and Finance : Are Some Financial Institutions Better Suited to Early Stages of Development Than Others?
This paper combines firm-level data from 89 countries with updated country-level data on financial structure, and uses two estimation approaches. It finds that in low-income countries, labor growth is swifter in countries with a higher level of pri...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111114114234 http://hdl.handle.net/10986/3648 |
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okr-10986-3648 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING ACCOUNTING RECORDS ADVANCED COUNTRIES ADVERSE IMPACT AGRICULTURE BANK ASSET BANK CREDIT BANK LENDING BANK POLICY BANK REGULATION BANKING CRISES BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SYSTEM BANKING SYSTEMS BENCHMARK BRITISH LEGAL ORIGIN BROKER BROKERS BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL EXPENDITURES CAPITAL FLOWS CAPITAL INTENSITY CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKETS CASH FLOW CENTRAL BANKS CHECKS CIVIL LAW COMMODITIES COMMODITY COMMON LAW CONSUMERS CORPORATE GOVERNANCE COUNTRY DUMMIES COUNTRY FIXED EFFECTS CREDIT GROWTH CREDIT LEVELS CREDIT MARKET CREDIT MARKETS CREDITWORTHINESS DEBTS DEMOCRACY DEVELOPING COUNTRIES DEVELOPMENT POLICY DOMESTIC BANKING DOMESTIC BANKING MARKETS DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES DURABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC OPPORTUNITY ECONOMIC RESEARCH ECONOMICS ECONOMIES OF SCALE EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH ENDOWMENTS EQUIPMENT EXCLUSION EXPENDITURES EXPROPRIATION EXTERNAL FINANCE EXTERNAL FINANCING FAMILY FARMS FINANCIAL DEVELOPMENT FINANCIAL HISTORIES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL STRUCTURES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH FIRM PERFORMANCE FOREIGN BANK FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN ENTRY FOREIGN FIRMS FOREIGN OWNERS FOREIGN OWNERSHIP FOREIGN OWNERSHIP OF BANKS GDP GDP PER CAPITA GOVERNMENT OWNERSHIP GOVERNMENT OWNERSHIP OF BANKS GROWTH RATE GROWTH RATES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROUP INCOME INEQUALITY INCOME LEVEL INCOME LEVELS INCOMES INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTRUMENT INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INVESTMENT CLIMATE INVESTMENT RATE INVESTMENT RATES INVESTOR PROTECTION JUDICIAL SYSTEM KEY CHALLENGE LEGAL PROTECTION LEGAL SYSTEM LEGAL TRADITIONS LENDERS LESS DEVELOPED ECONOMIES LIABILITY LOCAL FINANCIAL INSTITUTIONS LOCAL INFRASTRUCTURE LOW-INCOME COUNTRIES MARKET CAP MARKET DEVELOPMENT NATURAL RESOURCE NATURAL RESOURCES NET EXPORTS OUTPUT OUTREACH OUTSIDE INVESTORS OWNERSHIP STRUCTURE PER CAPITA INCOME PERFORMANCE MEASURES POLITICAL CONSIDERATIONS POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PORTFOLIO QUALITY POSITIVE COEFFICIENT POSITIVE COEFFICIENTS POSITIVE EFFECTS PRIVATE CREDIT PRIVATE MARKET PRIVATE PROPERTY PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PRUDENTIAL REGULATION REAL ESTATE REAL SECTOR RESERVES RULE OF LAW SALES GROWTH SECURITIES SECURITIES MARKET SECURITIES MARKET DEVELOPMENT SECURITIES MARKETS SHARE OF ASSETS SMALL BANKS SMALL BUSINESSES SMALL-SCALE ENTREPRENEURS SOURCES OF FINANCE STATE BANKS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS TAX TELECOMMUNICATIONS TRANSPORT WEALTH WORLD ECONOMIES |
| spellingShingle |
ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING ACCOUNTING RECORDS ADVANCED COUNTRIES ADVERSE IMPACT AGRICULTURE BANK ASSET BANK CREDIT BANK LENDING BANK POLICY BANK REGULATION BANKING CRISES BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SYSTEM BANKING SYSTEMS BENCHMARK BRITISH LEGAL ORIGIN BROKER BROKERS BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL EXPENDITURES CAPITAL FLOWS CAPITAL INTENSITY CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKETS CASH FLOW CENTRAL BANKS CHECKS CIVIL LAW COMMODITIES COMMODITY COMMON LAW CONSUMERS CORPORATE GOVERNANCE COUNTRY DUMMIES COUNTRY FIXED EFFECTS CREDIT GROWTH CREDIT LEVELS CREDIT MARKET CREDIT MARKETS CREDITWORTHINESS DEBTS DEMOCRACY DEVELOPING COUNTRIES DEVELOPMENT POLICY DOMESTIC BANKING DOMESTIC BANKING MARKETS DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES DURABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC OPPORTUNITY ECONOMIC RESEARCH ECONOMICS ECONOMIES OF SCALE EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH ENDOWMENTS EQUIPMENT EXCLUSION EXPENDITURES EXPROPRIATION EXTERNAL FINANCE EXTERNAL FINANCING FAMILY FARMS FINANCIAL DEVELOPMENT FINANCIAL HISTORIES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL STRUCTURES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH FIRM PERFORMANCE FOREIGN BANK FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN ENTRY FOREIGN FIRMS FOREIGN OWNERS FOREIGN OWNERSHIP FOREIGN OWNERSHIP OF BANKS GDP GDP PER CAPITA GOVERNMENT OWNERSHIP GOVERNMENT OWNERSHIP OF BANKS GROWTH RATE GROWTH RATES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROUP INCOME INEQUALITY INCOME LEVEL INCOME LEVELS INCOMES INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTRUMENT INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INVESTMENT CLIMATE INVESTMENT RATE INVESTMENT RATES INVESTOR PROTECTION JUDICIAL SYSTEM KEY CHALLENGE LEGAL PROTECTION LEGAL SYSTEM LEGAL TRADITIONS LENDERS LESS DEVELOPED ECONOMIES LIABILITY LOCAL FINANCIAL INSTITUTIONS LOCAL INFRASTRUCTURE LOW-INCOME COUNTRIES MARKET CAP MARKET DEVELOPMENT NATURAL RESOURCE NATURAL RESOURCES NET EXPORTS OUTPUT OUTREACH OUTSIDE INVESTORS OWNERSHIP STRUCTURE PER CAPITA INCOME PERFORMANCE MEASURES POLITICAL CONSIDERATIONS POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PORTFOLIO QUALITY POSITIVE COEFFICIENT POSITIVE COEFFICIENTS POSITIVE EFFECTS PRIVATE CREDIT PRIVATE MARKET PRIVATE PROPERTY PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PRUDENTIAL REGULATION REAL ESTATE REAL SECTOR RESERVES RULE OF LAW SALES GROWTH SECURITIES SECURITIES MARKET SECURITIES MARKET DEVELOPMENT SECURITIES MARKETS SHARE OF ASSETS SMALL BANKS SMALL BUSINESSES SMALL-SCALE ENTREPRENEURS SOURCES OF FINANCE STATE BANKS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS TAX TELECOMMUNICATIONS TRANSPORT WEALTH WORLD ECONOMIES Cull, Robert Xu, L. Colin Job Growth and Finance : Are Some Financial Institutions Better Suited to Early Stages of Development Than Others? |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5880 |
| description |
This paper combines firm-level data from
89 countries with updated country-level data on financial
structure, and uses two estimation approaches. It finds that
in low-income countries, labor growth is swifter in
countries with a higher level of private credit/gross
domestic product; the positive effect of bank credit is
especially pronounced in industries that depend heavily on
external finance; and banking development is positively
associated with more physical and human capital investment.
These findings are consistent with predictions from new
structural economics. In high-income countries, labor growth
rates are increasing in the level of stock market
capitalization, which is also consistent with predictions
from new structural economics, although the analysis is
unable to provide evidence that the association is causal.
It finds no evidence that small-scale firms in low-income
countries benefit most from private credit market
development. Rather, the labor growth rates of larger,
capital-intensive firms increase more with the level of
private credit market development, a finding consistent with
the history-based political economy view that banking
systems in low-income countries serve the interests of the
elite, rather than providing broad-based access to financial services. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Cull, Robert Xu, L. Colin |
| author_facet |
Cull, Robert Xu, L. Colin |
| author_sort |
Cull, Robert |
| title |
Job Growth and Finance : Are Some Financial Institutions Better Suited
to Early Stages of Development Than Others? |
| title_short |
Job Growth and Finance : Are Some Financial Institutions Better Suited
to Early Stages of Development Than Others? |
| title_full |
Job Growth and Finance : Are Some Financial Institutions Better Suited
to Early Stages of Development Than Others? |
| title_fullStr |
Job Growth and Finance : Are Some Financial Institutions Better Suited
to Early Stages of Development Than Others? |
| title_full_unstemmed |
Job Growth and Finance : Are Some Financial Institutions Better Suited
to Early Stages of Development Than Others? |
| title_sort |
job growth and finance : are some financial institutions better suited
to early stages of development than others? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111114114234 http://hdl.handle.net/10986/3648 |
| _version_ |
1764387618734211072 |
| spelling |
okr-10986-36482021-04-23T14:02:11Z Job Growth and Finance : Are Some Financial Institutions Better Suited to Early Stages of Development Than Others? Cull, Robert Xu, L. Colin ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCOUNTING ACCOUNTING RECORDS ADVANCED COUNTRIES ADVERSE IMPACT AGRICULTURE BANK ASSET BANK CREDIT BANK LENDING BANK POLICY BANK REGULATION BANKING CRISES BANKING SECTOR BANKING SECTOR ASSETS BANKING SECTOR DEVELOPMENT BANKING SECTORS BANKING SYSTEM BANKING SYSTEMS BENCHMARK BRITISH LEGAL ORIGIN BROKER BROKERS BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL EXPENDITURES CAPITAL FLOWS CAPITAL INTENSITY CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKETS CASH FLOW CENTRAL BANKS CHECKS CIVIL LAW COMMODITIES COMMODITY COMMON LAW CONSUMERS CORPORATE GOVERNANCE COUNTRY DUMMIES COUNTRY FIXED EFFECTS CREDIT GROWTH CREDIT LEVELS CREDIT MARKET CREDIT MARKETS CREDITWORTHINESS DEBTS DEMOCRACY DEVELOPING COUNTRIES DEVELOPMENT POLICY DOMESTIC BANKING DOMESTIC BANKING MARKETS DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES DURABLE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORIANS ECONOMIC OPPORTUNITY ECONOMIC RESEARCH ECONOMICS ECONOMIES OF SCALE EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH ENDOWMENTS EQUIPMENT EXCLUSION EXPENDITURES EXPROPRIATION EXTERNAL FINANCE EXTERNAL FINANCING FAMILY FARMS FINANCIAL DEVELOPMENT FINANCIAL HISTORIES FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKETS FINANCIAL RESOURCES FINANCIAL SECTOR FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTORS FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL STRUCTURES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH FIRM PERFORMANCE FOREIGN BANK FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN ENTRY FOREIGN FIRMS FOREIGN OWNERS FOREIGN OWNERSHIP FOREIGN OWNERSHIP OF BANKS GDP GDP PER CAPITA GOVERNMENT OWNERSHIP GOVERNMENT OWNERSHIP OF BANKS GROWTH RATE GROWTH RATES HUMAN CAPITAL INCOME INCOME DISTRIBUTION INCOME GROUP INCOME INEQUALITY INCOME LEVEL INCOME LEVELS INCOMES INFORMATION ASYMMETRIES INFORMATION ASYMMETRY INSTITUTIONAL DEVELOPMENT INSTITUTIONAL ENVIRONMENT INSTRUMENT INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INVESTMENT CLIMATE INVESTMENT RATE INVESTMENT RATES INVESTOR PROTECTION JUDICIAL SYSTEM KEY CHALLENGE LEGAL PROTECTION LEGAL SYSTEM LEGAL TRADITIONS LENDERS LESS DEVELOPED ECONOMIES LIABILITY LOCAL FINANCIAL INSTITUTIONS LOCAL INFRASTRUCTURE LOW-INCOME COUNTRIES MARKET CAP MARKET DEVELOPMENT NATURAL RESOURCE NATURAL RESOURCES NET EXPORTS OUTPUT OUTREACH OUTSIDE INVESTORS OWNERSHIP STRUCTURE PER CAPITA INCOME PERFORMANCE MEASURES POLITICAL CONSIDERATIONS POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PORTFOLIO QUALITY POSITIVE COEFFICIENT POSITIVE COEFFICIENTS POSITIVE EFFECTS PRIVATE CREDIT PRIVATE MARKET PRIVATE PROPERTY PRIVATE SECTOR DEVELOPMENT PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PRUDENTIAL REGULATION REAL ESTATE REAL SECTOR RESERVES RULE OF LAW SALES GROWTH SECURITIES SECURITIES MARKET SECURITIES MARKET DEVELOPMENT SECURITIES MARKETS SHARE OF ASSETS SMALL BANKS SMALL BUSINESSES SMALL-SCALE ENTREPRENEURS SOURCES OF FINANCE STATE BANKS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS TAX TELECOMMUNICATIONS TRANSPORT WEALTH WORLD ECONOMIES This paper combines firm-level data from 89 countries with updated country-level data on financial structure, and uses two estimation approaches. It finds that in low-income countries, labor growth is swifter in countries with a higher level of private credit/gross domestic product; the positive effect of bank credit is especially pronounced in industries that depend heavily on external finance; and banking development is positively associated with more physical and human capital investment. These findings are consistent with predictions from new structural economics. In high-income countries, labor growth rates are increasing in the level of stock market capitalization, which is also consistent with predictions from new structural economics, although the analysis is unable to provide evidence that the association is causal. It finds no evidence that small-scale firms in low-income countries benefit most from private credit market development. Rather, the labor growth rates of larger, capital-intensive firms increase more with the level of private credit market development, a finding consistent with the history-based political economy view that banking systems in low-income countries serve the interests of the elite, rather than providing broad-based access to financial services. 2012-03-19T18:06:10Z 2012-03-19T18:06:10Z 2011-11-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111114114234 http://hdl.handle.net/10986/3648 English Policy Research working paper ; no. WPS 5880 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |