IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v10y2022i1p2099501.html
   My bibliography  Save this article

Financial development and business growth: A case of the Southern Key Economic Region

Author

Listed:
  • Minh Ngoc Ngo
  • Thuc Ngoc Nguyen

Abstract

This paper employs generalized methods of moment (GMM) to analyze the enterprise data set collected from the General Statistics Office in the period 2005–2018 to provide insight on the influence of financial development on business growth: the case of the Southern Key Economic Zone (SKEZ). The empirical results indicate that financial development plays an important role in business growth. However, providing financing to offset scale has the potential to increase sales but reduce business growth. Thus, businesses in the SKEZ need to carry out some following points. First, corporate managers not only focus on growth and considering as important as sales and productivity throughout their operations but on strengthening the depth of the financial system to allow businesses to get favorable conditions to receive external financial sources. Second, policymakers should promote a well-developed financial system that can ease credit constraints for businesses.

Suggested Citation

  • Minh Ngoc Ngo & Thuc Ngoc Nguyen, 2022. "Financial development and business growth: A case of the Southern Key Economic Region," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2099501-209, December.
    • Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2099501
    DOI: 10.1080/23322039.2022.2099501
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2022.2099501
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2022.2099501?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2099501. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.