Financial liberalization and sectoral reallocation of capital in South Africa

Chinzara, Zivanemoyo, Lahiri, Radhika, & Chen, En Te (2016) Financial liberalization and sectoral reallocation of capital in South Africa. Empirical Economics. (In Press)

View at publisher

Abstract

We examine the impact of financial reforms on efficient reallocation of capital within and between sectors in South Africa using firm-level panel data for the period 1991–2008. The measure of efficient allocation of capital is based on the Tobin’s Q. We find that financial reforms are associated with improvements in within-sector, but not between-sector allocation of capital. These results imply that for South Africa to unleash the potential for take-off that is often associated with reallocation of resources from the primitive to modern sectors, reforms that focus beyond the financial sector are necessary. While more research is necessary to determine what would fully constitute such additional reforms, our analysis shows that reforms that improve the quality of economic institutions may be a step in the right the direction.

Impact and interest:

0 citations in Scopus
Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 94873
Item Type: Journal Article
Refereed: Yes
Keywords: Financial liberalization, Within-sector/between-sector reallocation of capital, Efficient capital allocation, Economic development, Tobin’s Q
DOI: 10.1007/s00181-016-1070-z
ISSN: 0377-7332
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2016 Springer-Verlag Berlin Heidelberg
Deposited On: 15 Apr 2016 02:20
Last Modified: 18 Apr 2016 00:52

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page