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

  • Domenico Sarno

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.

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Article provided by Spiru Haret University, Faculty of Financial Management and Accounting Craiova in its journal Journal of Applied Economic Sciences.

Volume (Year): 3 (2008)
Issue (Month): 3(5)_Fall2008 ()
Pages: 293-305

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Handle: RePEc:ush:jaessh:v:3:y:2008:i:3(5)_fall2008:p:293-305
Contact details of provider: Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14

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