Financial development gap, institutional distance and international cooperation on production capacity

Xuewei Yu, Jingyi Jiao and Hongying Yin

Finance Research Letters, 2023, vol. 56, issue C

Abstract: Using a sample of 167 countries (regions) from 2007 to 2019, this paper examines the impact of financial development gap and institutional distance on the international cooperation on production capacity. We use two-way fixed effect and threshold models to explore this issue between China and the other countries (regions). We conclude that both financial development gap and institutional distance can inhibit international capacity cooperation, and this effect is more pronounced in middle-income countries and the Belt and Road countries. This finding is robust after a series of robustness checks. Furthermore, institutional distance has a threshold effect on the impact of financial development gap on the international cooperation on production capacity.

Keywords: Financial development gap; Institutional distance; International cooperation; Production capacity; Threshold effect (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612323004294
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:finlet:v:56:y:2023:i:c:s1544612323004294

DOI: 10.1016/j.frl.2023.104057

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().