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

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.

List of contents

1. Introduction; 2. What is Financial Structure? Does It Matter?; 3. Determinants of Financial Structures; 4. Determines the Appropriate Financial Structure and Empirical Testing; 5. The Role of State in Financial System; 6. Why Excessive Financialization Should Be Avoided?; 7. Conclusion.

Summary

Proposes an alternative framework for rethinking the role of finance in serving the real economy from the perspective of New Structural Financial Economics. This title is also available as Open Access on Cambridge Core.

Foreword

New Structural Financial Economics offers an alternative framework for rethinking the role of finance in serving the real economy.

Product details

• Authors: Justin Yifu Lin, Justin Yifu (Institute of New Structural Econ Lin, Justin Yifu (Peking University Lin, Lin Justin Yifu, Jiajun Xu, Xu Jiajun, Zirong Yang, Yilin Zhang
• Publisher: Cambridge University Press ELT
• Languages: English
• Product format: Paperback / Softback
• Released: 31.03.2024
• EAN: 9781009501736
• ISBN: 978-1-0-0950173-6
• No. of pages: 72
• Series: Elements in Development Economics
• Subjects: Social sciences, law, business > Business > Economics; Finance, BUSINESS & ECONOMICS / Economics / General, BUSINESS & ECONOMICS / Finance / General, BUSINESS & ECONOMICS / Development / Economic Development, economic growth, Economic systems and structures, Economic systems & structures, Development economics & emerging economies, Development economics and emerging economies, Finance and the finance industry