Abstract
This paper examines the role of financial development in shaping knowledge-based economy in emerging countries using panel data approach from 1995 to 2011. On overall financial development, we find that larger financial sector and financial system that is more bank-based are associated with higher knowledge economy status. On banking development, our results show that a well-developed banking sector contributes positively to a country’s standing in the knowledge economy index. Interestingly, we find no evidence that stock market influences the state of knowledge economy. The findings suggest that bank-based financial system is the key financial structure that best supports knowledge-based development in emerging countries.
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Article Details
- Year: 2015
- Volume: 36
- Issue: 1
- Pages: 51 - 88
- Accepted: 06.01.2014
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DOI:
https://doi.org/10.5281/zenodo.20342019 -
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How to Cite?
Soo-Wah Low, Lain-Tze Tee, Si-Roei Kew , Noor A. Ghazali (2015). The Link between Financial Development and Knowledge-Based Economy - Evidence From Emerging Markets. Journal of Economic Cooperation and Development, 36(1), 51-88. https://doi.org/10.5281/zenodo.20342019
