The theory of the optimal allocation of risk and the Townsend Thai panel data on financial transactions are used to assess the impact of the major formal and informal financial institutions of an emerging market economy. We link financial institution assessment to the actual impact on clients, rather than ratios and non-performing loans. We derive both consumption and investment equations from ...

Does financial development result in capital being reallocated more rapidly to industries where it is most productive? We argue that if this was the case, financially developed countries should see faster growth in industries with investment opportunities due to global demand and productivity shifts. Testing this cross-industry cross-country growth implication requires proxies for (latent) glob...

In this paper I attempt to replicate for Sweden the Corrado, Hulten and Sichel (2006) and Marrano and Haskel (2006) working papers on spending on intangible assets in the US and the UK. Based on their measurement methods the total spending on intangibles in Sweden in 2004 was 277 billion SEK or 10.6 percent of total GDP. Based on total spending it can be estimated that total investment in intan...

many researches have depicted there is no significant and positive correlation between it and firm level performance, called productivity paradox, so as successful investment on it depends on taking into account the role of complementary assets such as business processes and organizational infrastructures. on the other hand, since there are not enough resources to invest on all these assets, th...

This survey treats the problem of ruin in a risk model when assets earn investment income. In addition to a general presentation of the problem, topics covered are a presentation of the relevant integrodifferential equations, exact and numerical solutions, asymptotic results, bounds on the ruin probability and also the possibility of minimizing the ruin probability by investment and possibly re...

This paper suggests that the use of investment incentives focusing exclusively on foreign firms, although motivated in some cases from a theoretical point of view, is generally not an efficient way to raise national welfare. The main reason is that the strongest theoretical motive for financial subsidies to inward FDI – spillovers of foreign technology and skills to local industry – is not an a...

Financial institutions are striving to maximize benefits from the emerging digital economy. However, the decision to take such an investment option is contingent upon the "preparedness" of these institutions and the attributes of the infrastructure of global transactions. While the migration to global spaces of operation is being relaxed by the proliferation of information technology infrastruc...

R ECENT studies (Borensztein and Ostry, 1996; Chow, 1993; and World Bank, 1997) document that the rapid growth in China since the early 1980s is accompanied by productivity increase in labour and capital. Evidence on the improvement in industrial productivity of state and collective sectors (Chen et al., 1988a and 1988b, Jefferson, 1989; and Jefferson, Rawski and Zheng, 1992 and 1994) was contr...