Journal of Guangxi Teachers Education University (Philosophy and Social Sciences Edition) ›› 2020, Vol. 56 ›› Issue (2): 94-114.doi: 10.16088/j.issn.1001-6597.2020.02.009

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Financial Development and Manufacturing Performance: An Empirical Analysis Based on 78 Countries

WU Li-chao, HUANG Yi-ting, CONG Shan, CHEN Li-ling   

  1. School of Economics, Xiamen University, Xiaomen 361005, China
  • Received:2019-12-24 Published:2020-04-20

Abstract: With an analysis of the mechanism of financial development affecting industry performance, added by the cross-border panel data of 128 industries in 78 countries (1990-2010), this paper explores the impact of financial development and its volatility on industry performance. In the empirical part, robust standard error for mixed cross-section is adopted to construct indicators that characterize financial development and its volatility, and the impact of financial development on industry performance is explored according to the heterogeneity of liquidity demand. The results show that a high efficiency of national financial development noticeably enhances the industry performance, in particular to those with greater liquidity demand and more dependence on external financing, and vise versa.

Key words: financial development, industry performance, liquidity demand

CLC Number: 

  • F830
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