مقاله انگلیسی رایگان در مورد آیا ساختار اقتصادی، ساختار مالی را تعیین می کند؟ – الزویر ۲۰۱۸

In this paper, we examine the relationship between the structure of the real economy and a country’s financial system. We consider whether the development of the real economic structure can predict the direction of evolution of a country’s financial structure. Using data for 108 countries, we find a significant relationship between real economic structure and financial structure. Next, we exploit shocks to the economies in India, Finland and Sweden, and South Korea and show that changes in the economic structure of a country influence the evolution of its financial system. This suggests that financial institutions and capital markets change in response to the structure of industries.

Introduction

The structures of financial systems vary among industrial and developing countries. In some countries, financial systems are predominantly bank-based, while in others they are dominated by capital markets. Only fragmented theories exist in the literature that explain the prevailing differences in country financial structures, which are defined as the mix of financial markets, institutions, instruments, and contracts that prescribe how financial activities are organised at a particular date. The existing studies explain the prevailing differences in financial structures using legal origin and protection, politics, history, and culture as factors. This paper considers the link between the real economic structure and the financial system of a country. Such a relationship is influenced by the funding sources for corporate investment that differ depending on firm and project characteristics (Allen, 1993; Boot and Thakor, 1997; Allen and Gale, 1999). Consistent with this theory, banks are more appropriate for the financing of traditional asset-intensive industries, whereas capital markets favour innovative and risky projects. One implication of this theory is that the real economic structure of a country, whether it is asset intensive or service oriented, could determine its financial structure. For instance, financial systems in countries such as Germany and Japan would remain bank-based as long as their economies are dominated by manufacturing industries. Contrastingly, the financial system in the United States will continue to be market-oriented as long as service and highly innovative companies constitute a large share of the economy. Consequently, the financial systems of the United States, Germany, or Japan will remain at polar extremes because of their economic structures even though the countries are at a similar stage of development.