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Financial And Legal Constraints To Firm Growth: The Case Of Italy

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  • Domenico Sarno

Abstract

The aim of this study is to confirm empirically the implications of the theory about the law-financegrowth nexus. In order to verify the predictions of the theory, a panel data including three different types of data is used. All the data are referred to Italian provinces. The empirical analysis shows that between firms� growth and financial development there is a first-order relationship, while between firms� growth and legal enforcement as measured by the efficiency of the judicial system there is a second-order relationship.

Suggested Citation

  • Domenico Sarno, 2008. "Financial And Legal Constraints To Firm Growth: The Case Of Italy," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(3(5)_Fall), pages 293-305.
    • Handle: RePEc:ush:jaessh:v:3:y:2008:i:3(5)_fall2008:p:293-305
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    Cited by:

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    2. Anna GIUNTA & Domenico SARNO, 2009. "Firm’S Financing And Industrial Structure In The Less Developed Regions Of The South Italy," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(4(10)_Win), pages 509-525.
    3. Filipe Silva & Carlos Carreira, 2012. "Measuring Firms’ Financial Constraints: A Rough Guide," Notas Económicas, Faculty of Economics, University of Coimbra, issue 36, pages 23-46, December.

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    More about this item

    Keywords

    enforcement; judicial efficiency; financial development; firm�s growth;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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