Financial development and self-employment

Papar Kananurak and Aeggarchat Sirisankanan

International Journal of Development Issues, 2020, vol. 19, issue 3, 339-357

Abstract: Purpose - There are several different factors that can influence self-employment. However, there is little evidence stemming from direct examination of the impact of financial development (FD) on self-employment. This study aims to formulate empirical specification models to examine the effect of FD on self-employment. Design/methodology/approach - Panel data analysis of 136 sample countries was performed during the period from 2000 to 2017. This study initially implemented the new financial index developed by the International Monetary Fund (IMF) to examine the impact of FD on self-employment. Panel data analysis including the pooled model, fixed effect and random effect model has been carried out. Findings - The empirical results show that the financial institutions index has a negative significant impact on self-employment by a considerable magnitude, whereas the financial markets index does not show any statistical significance. The results also find that the government effectiveness index is negative and statistically significant on self-employment. Originality/value - There are several different factors which can influence self-employment. Nevertheless, there is little evidence for the direct examination of the impact of FD on self-employment. This study investigated the impact of FD on self-employment by using the new FD index created by the IMF. The finding may help policymakers to implement FD along with other institutional policies to control self-employment.

Keywords: Self-employment; Financial development; Institution (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:ijdipp:ijdi-11-2019-0190

DOI: 10.1108/IJDI-11-2019-0190

Access Statistics for this article

International Journal of Development Issues is currently edited by Dr Dilip Dutta

More articles in International Journal of Development Issues from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().