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A New Database on Financial Development and Structure
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TLDR
Beck, Demirguc-Kunt, and Levine as mentioned in this paper introduced a new database of indicators of financial development and structure across countries and over time, which unifies a range of indicators that measure the size, activity, and efficiency of financial intermediaries and markets.Abstract:
This new database of indicators of financial development and structure across countries and over time unites a range of indicators that measure the size, activity, and efficiency of financial intermediaries and markets. Beck, Demirguc-Kunt, and Levine introduce a new database of indicators of financial development and structure across countries and over time. This database is unique in that it unites a variety of indicators that measure the size, activity, and efficiency of financial intermediaries and markets. It improves on previous efforts by presenting data on the public share of commercial banks, by introducing indicators of the size and activity of nonbank financial institutions, and by presenting measures of the size of bond and primary equity markets. The compiled data permit the construction of financial structure indicators to measure whether, for example, a country's banks are larger, more active, and more efficient than its stock markets. These indicators can then be used to investigate the empirical link between the legal, regulatory, and policy environment and indicators of financial structure. They can also be used to analyze the implications of financial structure for economic growth. Beck, Demirguc-Kunt, and Levine describe the sources and construction of, and the intuition behind, different indicators and present descriptive statistics. This paper - a product of Finance, Development Research Group - is part of a broader effort in the group to understand the determinants of financial structure and its importance to economic development. The authors may be contacted at tbeck@worldbank.org, ademirguckunt@worldbank.org, or rlevine@csom.umn.edu.read more
Citations
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A Fragile Link? A New Empirical Analysis of the Relationship between Financial Development and Economic Growth
TL;DR: This paper showed that financial development does not have a statistically significant effect on economic growth, a finding that is robust to different model specification and estimation techniques, being dependent on the sample of countries and time periods considered.
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Does financial development reinforce environmental footprints? Evidence from emerging Asian countries
TL;DR: The results confirmed that per capita income, energy solutions, trade expansion, and financial sector development invigorated the ecological footprint, carbon footprint, and land footprint in the long run.
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Finance and Growth: A Critical Survey *
TL;DR: The authors present a survey of the finance-growth nexus that raises a number of qualifications to the standard interpretation and investigate doubts regarding empirical consensus and consider the prevalence of cross-section econometrics as dominant in shaping the present theoretical consensus.
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Financial structure and economic growth: evidence from time series analyses
TL;DR: In this paper, the authors examined whether financial structure influences economic growth and found that cross country data cannot be pooled and that financial structure significantly affects real per capita output, and that panel estimates, in most cases, do not correspond to country specific estimates, and hence may proffer incorrect inferences for several countries of the panel.
References
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Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.
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Financial Dependence and Growth
Raghuram G. Rajan,Raghuram G. Rajan,Raghuram G. Rajan,Luigi Zingales,Luigi Zingales,Luigi Zingales +5 more
TL;DR: This paper examined whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship; that financial development reduces the costs of external finance to firms, and found that industrial sectors that are relatively more in need of foreign finance develop disproportionately faster in countries with more developed financial markets.
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Financial development and economic growth : views and agenda
Ross Levine,Ross Levine +1 more
TL;DR: The authors argued that the preponderance of theoretical reasoning and empirical evidence suggests a positive first-order relationship between financial development and economic growth, and that financial development level is a good predictor of future rates of economic growth.
Posted Content
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TL;DR: In this article, the authors evaluate whether the level of development of financial intermediaries exerts a casual influence on economic growth, and they find that financial intermediary development has a large causal impact on growth.
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TL;DR: The authors construct an endogenous growth model in which financial systems evaluate prospective entrepreneurs, mobilize savings to finance the most promising productivity-enhancing activities, diversify the risks associated with these innovative activities and reveal the expected profits from engaging in innovation rather than the production of existing goods using existing methods.