Finance and Development

This paper offers a critical review of the ‘single argument’ that underpins Penrose’s (1959) study, The Theory of the Growth of the Firm (TGF) It aims to complement and counter-point recent examinations of Penrose’s influence on strategic management, and on the resource-based view (RBV) in particular, including Jacobsen’s (2011) study. The paper examines six components of the argument, tracing their inter-connected journey towards TGF’s relatively neglected final chapters, which address the economic consequences of the growth of large firms. It also reflects on the implications for economic development research, with reference to Penrose’s later (1992) critique of contemporary liberalisation policies.

This article traces the uneven development of English cheese-making, from its early commercialization to the eventual triumph of the “cheese factory.” The narrative shows how contemporary actors initiated and adapted to changes in technology, distribution, consumption, and regulation. It indicates that artisanal practices have both borrowed from, and become integrated with, industrial logics and strategies, exemplifying a process that Charles F. Sabel and Jonathan Zeitlin termed the “recombinablility and interpenetration” of different forms of economic organization [World of Possibilities: Flexibility and Mass Production in Western Industrialization (Cambridge. 1997), 2-3]. International comparisons are introduced in order to clarify the reasons for England’s halting and idiosyncratic transition to industrial-scale cheese-making.

Purpose-This paper aims to offer a preliminary overview and analysis of the impact of the COVID-19 crisis on commodity-dependent developing economies (CDDEs). Using debt, decarbonisation and demand as empirical and analytical prisms to understand impacts and dynamics, the paper offers "rent space" as a theoretical tool to appreciate the changing possibilities for using resource rents for capital accumulation and expand development frontiers. It maps out the certain common features among this group of developing countries facing an increasingly adverse and uncertain situation. It offers a political economic perspective on the global dynamics and internal political situation that constrain these countries' ability to manage the effects of this external shock that date to the 2008 crisis, and to therefore shore up an effective recovery in the coming years. Design/methodology/approach-The paper draws together secondary literature and evidence from a number of sources including the World Bank, United Nations and International Monetary Fund on the empirical situation in these countries in view of COVID-19. The paper uses a thematic approach to understand how the current crisis has exposed these embedded and worsening vulnerabilities in this group of countries. Findings-Results demonstrate the wide-ranging effects of COVID-19 as an existential crisis of demand in short and medium term, the explosion of debt due to actually occurring financialisation and the looming medium and long-term consequences of decarbonisation that may oblige countries to abandon exploitation of fossil fuel resources. Originality/value-In the final analysis, COVID-19 has revealed a number of lingering effects of the commodity boom and global financial crisis. The increased indebtedness that resulted not only underscores the long-term unviability of commodity-based development as a strategy but also reveals new unprecedented weaknesses and challenges. Given the current configuration of global and domestic political economy dynamics, the paper shows that the "rent space" in fossil fuel exporters is particularly constrained and shrinking, compared to mineral exporters, but all showing a trend towards concentration in commodity production overall and worsening prospects for green recovery or industrial pathway.

"Thomas Marois’ groundbreaking interpretation of banking and development in Mexico and Turkey builds on a Marxian-inspired framework premised on understanding states and banks as social relationships alongside crisis and labor as vital to finance today. The book’s rich historical and empirical content reveals definite institutionalized relationships of power that mainstream political economists often miss.

While leading to a timely analysis of the impact of the Great Recession on Mexico and Turkey, the major contribution of States, Banks and Crisis is in its account of emerging finance capitalism. This is defined as the current phase of accumulation wherein the interests of financial capital are fused in the state apparatus as the institutionalized priorities and overarching social logic guiding the actions of state managers and government elites, often to the detriment of labor.

This interdisciplinary and accessible study on banking and development will prove to be an important resource for upper-level undergraduates, graduates, and scholars in economics, development studies, political science, political economy, development finance, sociology, international relations and international political economy.

Endorsement:

‘Financialization is as financialization does. It is a mix of the universal characteristics of finance within capitalism, its contemporary powerful hold over, even defining feature of, the neoliberal age, and the myriad of specific global markets and countries into which it has penetrated. In a stunning work of comparative political economy, Marois brilliantly weaves together these aspects of finance drawing on both innovative theoretical insights and primary case study evidence from Turkey and Mexico to furnish what will become a classic and original contribution to the understanding of financialization in the developing world, highlighting both the role of the state in the era of putatively free markets and the possibility, indeed, necessity of alternatives.’

– Ben Fine, University of London, UK"

Using a unique dataset which provides information on the financial structure of start-up companies in the Chinese manufacturing industry, this paper documents robust evidence that access to formal financing channels has beneficial effects on firm size, these effects being more marked as we move up the entry size distribution. By contrast we find negative relationships between informal finance and entry size across all size quantiles. Given the well-documented positive correlations between firm size and numerous performance indicators, this paper has therefore uncovered entry size as an additional channel through which financial development promotes growth.

J o u r n a l o f A c c o u n t i n g a n d M a n a g e m e n t J A M v o l. 5 , n o. 3 (2 0 1 5) Abstract : Unlike small and medium scale enterprises, there is no doubt that cooperative societies have attracted little attention from both the public and private sectors. This is not the case in industrialized countries such as Denmark, USA, Great Britain, etc; where they have contributed immensely to the GDP of their respective economies. A review by various scholars of the various ways of financing cooperatives in Nigeria reveals that there is no adequate nationwide financing agency. This study aims among others to review through historical data the operational and policy frameworks of the global and Nigerian cooperatives societies and other dependent cooperatives scattered all over the globe and their emerging trends in sourcing for funds. The methodology used is the content analysis. Historical (secondary data) such as journals, articles, textbooks, newspapers and Internet etc are employed. The paper identified the financing gap existing in cooperative movement in order for them to assume their proper position in the scheme of things in an emerging global economy. This paper recommends that amongst others that the Small and Medium Industries Equity Investment Scheme (An initiative of the Bankers Committee) should be extended to Nigerian Cooperative Societies.

Financial repression in a developing country is not new to us. The government may take policy for financial repression due to easy collection of inflation tax to the stage of economic development. This study is concerned to find the positive relationship between financial development and economic growth and productivity in the economy of Bangladesh. The research concluded that the financial repression has a negative relationship to the economic growth and productivity but the financial development is positively to relate the economic growth and productivity in the economy of Bangladesh. This study found evidence that the effect of financial repression is positive to the financial development in Bangladesh as it was to the high growth period in Japan. But the scenario was different for Latin American countries. Transition to the financial development from the stage of financial repression to the stage of financial liberalization is found positive to the economic growth and productivity in Bangladesh. The rural finance in agro sector is statistically significant at the level of 5% in two tail test and contributing financial sector development where the urban finance is still suffering various economic distortions to the economic growth and productivity.

This paper attempts to answer the question of how the uncertainty of stock price behaviour affected monetary policy decisions in Nigeria during the period 1991Q1-2015Q4. Although studies have been conducted on how the stock market responds to monetary policy decisions there is a paucity of analysis on how stock prices and the uncertainty of stock prices affect monetary policy, especially in Nigeria. Data was obtained from the Central Bank of Nigeria statistical database. Both Generalised Autoregressive Conditional Heteroskedasticity modelling and Generalised Method of Moments estimation were used for analysis. Findings from the regression analysis reveal that stock prices, as well as their unpredictable behaviour, significantly affect monetary policy decisions during the period under study. Another interesting finding is that the pair of the uncertainty of real output and inflation also significantly affected the monetary policy rate and that the monetary authority was more responsive to this pair than that of inflation and stock prices. The recommendation based on our findings is that the Central Bank of Nigeria should incorporate the uncertainty of stock prices into the monetary policy model when determining the policy rate.

The firm 3 The owner-managed firm 4 Performance 7 The need for a theoretical framework 7 The importance of owner-managed firms 10 Economic significance of owner-managed Arms.,.., 10 Interest perspectives of equity and debt holders in owner-managed firms H Equity holders,,., 14