Financial Structure and Industrial Structure

Antzoulatos, Angelos A.; Apergis, Nicholas; Tsoumas, Chris

doi:10.1111/j.1467-8586.2010.00355.x

Financial Structure and Industrial Structure

Bulletin of Economic Research, Vol. 63, No. 2, pp. 109-139, 2011

31 Pages Posted: 16 Mar 2011

See all articles by Angelos A. Antzoulatos

Angelos A. Antzoulatos

University of Piraeus - Department of Banking and Financial Management

Nicholas Apergis

University of Piraeus; University of Derby

Chris Tsoumas

Hellenic Open University

There are 2 versions of this paper

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 sectors performance relative to GDP.

Keywords: financial structure, industrial structure, panel cointegration

JEL Classification: G10, G20, O14

Suggested Citation: Suggested Citation

Antzoulatos, Angelos A. and Apergis, Nicholas and Tsoumas, Chris, Financial Structure and Industrial Structure. Bulletin of Economic Research, Vol. 63, No. 2, pp. 109-139, 2011. Available at SSRN: https://ssrn.com/abstract=1787855 or http://dx.doi.org/10.1111/j.1467-8586.2010.00355.x