Global financial networks and entrepreneurship

摘要

Financial network analysis can explain the extent of financial integration through the exploration of the lending and borrowing activities of firms in the international loan market. We contend that financial network will have a positive externality such that the acquisition of capital will have beneficial effects on entrepreneurship. Using the information from firms that participate in the syndicated loan market, we generate aggregate financial connectivity indexes and test our hypotheses on a panel of developing countries. The results show that financial connection relates to entrepreneurship. The connection of firms in these economies to the global community spurs entrepreneurship.