FINANCIAL STRUCTURE AND INDUSTRIAL STRUCTURE |
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Authors: | Angelos A Antzoulatos Nicholas Apergis Chris Tsoumas |
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Institution: | Department of Banking and Financial Management, University of Piraeus, 80 Karaoli and Dimitriou Street, Piraeus 18534, Greece |
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Abstract: | This paper explores the relationship between financial structure and industrial structure in a panel cointegration framework, using annual data for 29 countries and 28 industrial sectors for the period 1990–2001. The results indicate that financial structure is to a significant extent related to industrial structure in the long run, yet their relationship is partly consistent with the industrial sectors' technological orientation postulated by the theoretical literature. It is in line, however, with the so‐called ‘financial services view’ that stresses the importance of a well developed financial system for growth, irrespective of its structure. In addition, the results indicate that financial structure does not seem to play a role in a sector’s performance relative to GDP. |
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Keywords: | financial structure industrial structure panel cointegration G10 G20 O14 |
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