Zeng, Songlin; Wang, Zhenyi; Hueng, C. James; Huang, Sainan - In: Applied economics letters 29 (2022) 16, pp. 1504-1508
Using a dynamic panel threshold model, we find a nonlinear effect of financial development on participation in the global value chains for 92 countries. The effect is positive below a threshold and turns negative above it. We provide evidence supporting our explanation that when a country’s...