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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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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 4 (April)
Pages: 825-838

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:4:p:825-838

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: International listing globalization regulatory competition corporate governance East Asia China;

References

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  1. M Ayhan Kose & Eswar Prasad & Kenneth Rogoff & Shang-Jin Wei, 2009. "Financial Globalization: A Reappraisal," IMF Staff Papers, Palgrave Macmillan, vol. 56(1), pages 8-62, April.
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Cited by:
  1. Yao, Yang & Yueh, Linda, 2009. "Law, Finance, and Economic Growth in China: An Introduction," World Development, Elsevier, vol. 37(4), pages 753-762, April.
  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.

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