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Financial and labor market imperfections and investment

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  • Calcagnini, Giorgio
  • Giombini, Germana
  • Saltari, Enrico

Abstract

This paper analyses how financial and labor market imperfections jointly influence investment. The contemporaneous presence of imperfections gives rise to a negative correlation between EPL and investment. Our results support the policies promoted by European institutions to reform both markets.

Suggested Citation

  • Calcagnini, Giorgio & Giombini, Germana & Saltari, Enrico, 2009. "Financial and labor market imperfections and investment," Economics Letters, Elsevier, vol. 102(1), pages 22-26, January.
    • Handle: RePEc:eee:ecolet:v:102:y:2009:i:1:p:22-26
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    2. Stieglitz, Moritz & Setzer, Ralph, 2022. "Firm-level employment, labour market reforms, and bank distress," Journal of International Money and Finance, Elsevier, vol. 120(C).
    3. Etienne Wasmer & Alexandre Janiak, 2014. "Employment protection and capital-labor ratios," Sciences Po Economics Discussion Papers 2014-11, Sciences Po Departement of Economics.
    4. Rault, Christophe & Vaubourg, Anne-Gaël, 2011. "Labour Market Institutions and Unemployment: Does Finance Matter?," IZA Discussion Papers 5606, Institute of Labor Economics (IZA).
    5. Isa Camyar & Bahar Ulupinar, 2019. "Electoral systems and the economy: a firm-level analysis," Constitutional Political Economy, Springer, vol. 30(1), pages 1-30, March.
    6. repec:hal:spmain:info:hdl:2441/2a53rsm0o89kn9vjs4dhjqnvn5 is not listed on IDEAS
    7. Giordano, Claire & Marinucci, Marco & Silvestrini, Andrea, 2019. "The macro determinants of firms' and households' investment: Evidence from Italy," Economic Modelling, Elsevier, vol. 78(C), pages 118-133.
    8. Etienne Wasmer & Alexandre Janiak, 2014. "Employment protection and capital-labor ratios," Sciences Po Economics Discussion Papers 2014-11, Sciences Po Departement of Economics.
    9. Calcagnini, Giorgio & Travaglini, Giuseppe, 2014. "A time series analysis of labor productivity. Italy versus the European countries and the U.S," Economic Modelling, Elsevier, vol. 36(C), pages 622-628.
    10. Roy, Jayjit, 2021. "The effect of employment protection legislation on international trade," Economic Modelling, Elsevier, vol. 94(C), pages 221-234.
    11. Alexandre Janiak & Etienne Wasmer, 2014. "Employment protection and capital-labor ratios," SciencePo Working papers hal-03460272, HAL.
    12. Andrea Caggese & Ozan Guler & Mike Mariathasan & Klaas Mulier, 2022. "Firing Costs and Productivity: Evidence from a Natural Experiment," Working Papers 1376, Barcelona School of Economics.
    13. Calcagnini, Giorgio & Marin, Giovanni & Perugini, Francesco, 2021. "Labour flexibility, internal migration and productivity in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 308-320.
    14. Federico Cingano & Marco Leonardi & Julián Messina & Giovanni Pica, 2016. "Employment Protection Legislation, Capital Investment and Access to Credit: Evidence from Italy," Economic Journal, Royal Economic Society, vol. 126(595), pages 1798-1822, September.
    15. Enrico Saltari, 2012. "The role of ICT and Business Services in Italy," Working Papers in Public Economics 152, University of Rome La Sapienza, Department of Economics and Law.
    16. Calcagnini, Giorgio & Giombini, Germana & Travaglini, Giuseppe, 2019. "A theoretical model of imperfect markets and investment," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 237-244.
    17. repec:hal:spmain:info:hdl:2441/3aom2mve1k829p8sp4h3vrpgkg is not listed on IDEAS
    18. repec:hal:spmain:info:hdl:2441/2ennjqtovk8lvprrqlro5ni69v is not listed on IDEAS
    19. Alexandre Janiak & Etienne Wasmer, 2014. "Employment protection and capital-labor ratios," SciencePo Working papers hal-01061024, HAL.
    20. Ozan Güler & Mike Mariathasan & Klaas Mulier & Nejat G. Okatan, 2021. "The real effects of banks' corporate credit supply: A literature review," Economic Inquiry, Western Economic Association International, vol. 59(3), pages 1252-1285, July.
    21. Javier Escribá-Pérez & María José Murgui-García, 2017. "Do market regulations reduce investment? Evidence from European regions," Regional Studies, Taylor & Francis Journals, vol. 51(9), pages 1336-1347, September.
    22. Saltari, Enrico & Travaglini, Giuseppe, 2011. "Optimal abatement investment and environmental policies under pollution uncertainty," MPRA Paper 35072, University Library of Munich, Germany.
    23. Mr. Daniel Garcia-Macia, 2020. "Labor Costs and Corporate Investment in Italy," IMF Working Papers 2020/038, International Monetary Fund.
    24. repec:hal:journl:hal-01061024 is not listed on IDEAS

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