New structural financial economics : a framework for rethinking the role of finance in serving the real economy / Justin Yifu Lin, Jiajun Xu, Zirong Yang, Yilin Zhang.

Format:

Book

Author/Creator:

Lin, Justin Yifu, 1952- author.

Xu, Jiajun, author.

Yang, Zirong, author.

Zhang, Yilin, author.

Series:

Cambridge elements. Elements in development economics 2755-1601.

Cambridge elements. Elements in development economics, 2755-1601

Language:

English

Subjects (All):

Finance--Developing countries.

Finance.

Developing countries--Economic conditions.

Developing countries.

Physical Description:

1 online resource (61 pages) : digital, PDF file(s).

Edition:

1st ed.

Place of Publication:

Cambridge : Cambridge University Press, 2024.

Summary:

This Element proposes an alternative framework for rethinking the role of finance in serving the real economy from the perspective of New Structural Financial Economics. It challenges the conventional wisdom that developing countries should take the financial structure of developed countries as the benchmark and financial structure does not matter in spurring long-run economic development. As a sub-discipline of New Structural Economics, New Structural Financial Economics has three tenets. First, examining the appropriate financial structure should take an economy's factor endowment structure as the starting point of analysis, which identifies its latent comparative advantage. Second, the appropriate financial structure is determined by the financing needs of the prevailing production structure. Third, a government should provide development financing to address market failures, and make tailored financial regulations in line with the characteristics of specific financial arrangements. This title is also available as Open Access on Cambridge Core.--provided by publisher

Contents:

Cover

Title page

Copyright page

New Structural Financial Economics: A Framework for Rethinking the Role of Finance in Serving the Real Economy

Contents

1 Introduction

2 What Is Financial Structure? Does It Matter?

2.1 AWorking Definition of Financial Structure

2.2 Does Financial Structure Matter?

2.3 Why Financial Structure Matters from the NSFE Perspective

3 Determinants of Financial Structures

3.1 Variation in Financial Structures

3.2 The Existing Explanations of Variation in Financial Structures

3.3 The NSFE Perspective

4 Determinants of the Appropriate Financial Structure and Empirical Testing

4.1 Distinctive Demand of the Real Economy

4.1.1 Financing Demand of Developing Economies

4.1.2 Financing Demand of Developed Economies

4.2 Comparative Advantages of Different Financial Arrangements

4.2.1 Banks Versus the Stock Market

4.2.2 Big Banks versus Small Banks

4.2.3 Digital Finance and Traditional Finance

4.2.4 Formal Finance versus Informal Finance

4.3 Match between the Financing Demand and Supply

4.4 A Preliminary Discussion on Methods of Empirical Testing of Appropriate Financial Structure

5 The Role of the State in the Financial System

5.1 Establishing PDFIs to Address Market Failures of Financial Markets and Institutions

5.1.1 A Brief History of PDFIs after World War II

5.1.3 The Insights of NSFE on PDFIs

5.2 Making Tailored Financial Regulations

5.3 Implementing Pragmatic Financial Reforms to Address Financial Depression

6 Why Should Excessive Financialization Be Avoided?

7 Conclusion

References

Acknowledgments

Notes:

Title from publisher's bibliographic system (viewed on 16 Feb 2024).

ISBN:

9781009501743

1009501747

9781009501705

1009501704

Access Restriction:

Open Access. Unrestricted online access