Development and validation of the social emotional competence questionnaire (SECQ)

Reliable and valid measures of children’s and adolescents’ social emotional competence (SEC) are necessary to develop in order to assess their social emotional development and provide appropriate intervention in child and adolescent development. A pool of 25 items was created for the Social Emotional Competence Questionnaire (SECQ) that represented five dimensions of SEC: self-awareness, social awareness, self-management, relationship management and responsible decision-making. A series of four studies are reported relating to the development and validation of the measure. Confirmatory factor analyses of the responses of 444 fourth-graders showed an acceptable fit of the model. The model was replicated with another 356 secondary school students. Additional studies revealed good internal consistency. The significant correlations among the five SEC components and academic performance provided evidence for the predictive validity of the instrument. With multiple samples, these results showed that the scale holds promise as a reliable, valid measure of SECpeer-reviewe

Financial Sector Development and Growth: The Chinese Experience

institutions, growth, financial intermediation, transition, China

Bank capital, liquidity creation and deposit insurance

This paper examines how the introduction of deposit insurance influences the relationship between bank capital and liquidity creation. As discussed by Berger and Bouwman (2009), there are two competing hypotheses on this relationship which can be influenced by the presence of deposit insurance. The introduction of a deposit insurance scheme in an emerging market, Russia, provides a natural experiment to investigate this issue. We study three alternative measures of bank liquidity creation and perform estimations on a large set of Russian banks. Our findings suggest that the introduction of the deposit insurance scheme exerts a limited impact on the relationship between bank capital and liquidity creation and does not change the negative sign of the relationship. The implication is that better capitalized banks tend to create less liquidity, which supports the “financial fragility/crowding-out” hypothesis. This conclusion has important policy implications for emerging countries as it suggests that bank capital requirements implemented to support financial stability may harm liquidity creation.bank capital; liquidity creation; deposit insurance; Russia

Institutional development, financial deepening and economic growth: Evidence from China

There have been profound changes in both political and economic institutions in China over the last twenty years. Moreover, the pace of transition has led to variation across the country in the level of development. In this paper, we use panel data for the Chinese provinces to study the role of legal institutions, financial deepening and political pluralism on growth rates. The most important institutional developments for a transition economy are the emergence and legalization of the market economy, the establishment of secure property rights, the growth of a private sector, the development of financial sector institutions and markets, and the liberalization of political institutions. We develop measures of these phenomena, which are used as explanatory variables in regression models to explain provincial GDP growth rates. Our evidence suggests that the development of financial markets, legal environment, awareness of property rights and political pluralism are associated with stronger growth.economic growth; institutions; financial markets; China

New small firms and dimensions of economic performance

Using data from US labour market areas, we quantify empirical associations between entry by small firms and a vector of economic performance measures encompassing levels, volatilities and growth rates of several income and employment variables. Distinct and robust associations are found for net and gross rates of entry. These results suggest a richer variety of effects of entry than previously documented, and point to several potential tradeoffs associated with entry by small firms.growth; stability; employment; entry

Do better institutions improve bank efficiency? Evidence from a transitional economy

The pace of transition in China over the last two decades has led to great variation across the country in terms of institutional and financial development. In this paper, using a panel of Chinese provinces during the period 1993–2006, we empirically investigate the determinants of the efficiency of the banking sector from an institutional perspective. The most important institutional developments in China are the emergence and gradual dominance of the market economy, financial deepening, the growth of a private sector, the establishment of secure property rights, and rule of law. We find that institutional variables play an important role in affecting banking efficiencies, and that banks tend to operate more efficiently in those regions with a greater private sector presence and more property rights awareness, while the role of financial deepening and rule of law is less straightforward.institutional development; bank efficiency; Chinese banks

Bank ownership and efficiency in China: what lies ahead in the world’s largest nation?

China is reforming its banking system, partially privatizing and permitting minority foreign ownership of three of the dominant ‘big four’ state-owned banks. This paper seeks to help predict the effects of this change by analysing the efficiency of virtually all Chinese banks in the years 1994–2003. Our findings suggest the big four banks are by far the least efficient and foreign banks the most efficient while minority foreign ownership is associated with significantly improved efficiency. We present corroborating robustness checks and offer several credible mechanisms through which minority foreign owners can increase Chinese bank efficiency. These findings suggest that minority foreign ownership of the big four is likely to significantly improve performance.foreign banks; efficiency; foreign ownership