DEVELOPMENT OF FINANCIAL-MARKETS AND THE SIZE DISTRIBUTION OF MANUFACTURING ESTABLISHMENTS - INTERNATIONAL COMPARISONS

Institutional determinants have largely been neglected in explaining international differences in the size distribution of manufacturing establishments. This paper draws on recent developments in institutional analysis to derive certain hypotheses concerning the way in which the size distribution within manufacturing is affected by the degree of development of the markets for debt and equity. These hypotheses are tested on the basis of an international cross-section of 54 countries. The results are generally supportive of the hypotheses, especially in the case of developing countries.