Heterogeneity across institutions, individuals, or countries is often the key to identification. Seminal theoretical work on the functioning of credit markets, relevant frictions, and implications for monetary transmission dates back 20 years. 18  For empirical research in this field, loan-  level microdata comprising detailed information on lenders, financing conditions, and the provision of collateral is of utmost importance.
There is indeed a growing body of research which points towards capital market development making positive contribution to economic growth. Fiji’s stock market fulfils two main functions. Firstly, the market acts as a means for raising capital for companies, and secondly, a more important secondary role is that it facilitates the exchange of previously issued shares.