Financial sector in resource-dependent economies

Sanna Kurronen

Emerging Markets Review, 2015, vol. 23, issue C, 208-229

Abstract: This paper examines financial sector characteristics in resource-dependent economies. Using an extensive data set covering 128 countries for the period 1995 to 2009, we present empirical evidence that the banking sector tends to be smaller in resource-dependent economies. Moreover, we locate a low threshold level at which the higher resource-dependence begins to be harmful for domestic banking sector. We also find evidence that the use of market-based financing is more common in resource-dependent economies. Further, our results suggest that a financial sector formed according to the needs of the resource sector might be unfavorable for emerging businesses, thereby hampering economic diversification and reinforcing the resource curse.

Keywords: Resource dependence; Resource curse; Financial sector; Banks; Panel data (search for similar items in EconPapers)
JEL-codes: G20 O16 O57 Q32 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014115000229
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:23:y:2015:i:c:p:208-229

DOI: 10.1016/j.ememar.2015.04.010

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().