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International Listing as a Means to Mobilize the Benefits of Financial Globalization: Micro-level Evidence from China

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  • Tobin, Damian
  • Sun, Laixiang

Abstract

Summary This paper proposes a micro-level framework to account for how firms in developing economies overcome domestic institutional constraints. It illustrates that the mechanisms enabling those firms to benefit from financial globalization are more complex than the "direct" financial channels outlined in the neo-classical approach. China provides an important example in this context, as its capital market liberalization has been limited and neither the legal nor the financial system is well developed. Yet micro-level evidence from China's internationally listed enterprises indicates that innovative firms can overcome institutional thresholds, secure access to international capital, and benefit and learn from international capital markets. This can in turn induce market-level improvements through regulatory competition and demand for a more standardized system of economic regulation.

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  • Tobin, Damian & Sun, Laixiang, 2009. "International Listing as a Means to Mobilize the Benefits of Financial Globalization: Micro-level Evidence from China," World Development, Elsevier, vol. 37(4), pages 825-838, April.
    • Handle: RePEc:eee:wdevel:v:37:y:2009:i:4:p:825-838
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    Cited by:

    1. Wilson, Ross, 2016. "Does Governance Cause Growth? Evidence from China," World Development, Elsevier, vol. 79(C), pages 138-151.
    2. Tobin, Damian, 2011. "Austerity and Moral Compromise: Lessons from the Development of China's Banking System," World Development, Elsevier, vol. 39(5), pages 700-711, May.
    3. Shu-Yun Ma, 2010. "Shareholding System Reform in China," Books, Edward Elgar Publishing, number 13243.
    4. Linda Yueh, 2010. "The Economy of China," Books, Edward Elgar Publishing, number 3705.
    5. Wilson, Ross, 2015. "Does Governance Cause Growth? Evidence from China," Working Papers 2015:14, Lund University, Department of Economics.
    6. Yao, Yang & Yueh, Linda, 2009. "Law, Finance, and Economic Growth in China: An Introduction," World Development, Elsevier, vol. 37(4), pages 753-762, April.

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