scispace - formally typeset
Open AccessPosted Content

A New Database on Financial Development and Structure

Reads0
Chats0
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
More filters
Journal ArticleDOI

Institutions and the finance–growth nexus: Empirical evidence from MENA countries

TL;DR: In this article, an empirical model with linear interaction between financial development and institutional quality is estimated to investigate the effect of institutional quality on the finance-growth nexus, which provides strong evidence that institutional quality mitigates the negative effect of financial development on economic growth.
Journal ArticleDOI

FDI and Growth: What Cross-Country Industry Data Say

TL;DR: In this article, the authors provide evidence that FDI has a positive and statistically significant growth effect in recipient countries, using a panel of 14 manufacturing sectors for (a sample of) developed and developing countries over the period 1992 -2004.
Journal ArticleDOI

Banking competition and economic growth: cross-country evidence

TL;DR: In this article, the authors analyse the effect of banking competition on industry economic growth using both structural measures of competition and measures based on the new empirical industrial organization perspective, showing that bank monopoly power has an inverted-U-shaped effect on economic growth.
Journal ArticleDOI

The International Financial Integration of China and India

TL;DR: The international financial integration of China and India is studied in this paper, where three main features characterize the international finance integration: short equity, long debt, and asymmetric balance sheets.
Journal ArticleDOI

Law or finance: evidence from Finland

TL;DR: In this article, the authors evaluate the benefits of corporate governance reform by constructing 18 measures of shareholder and creditor protection for Finland for the period 1980-2000 and find evidence that the development of shareholder protection has been a driver of the reorganisation, whereas the changes in creditor protection have mirrored market developments.
References
More filters
Journal ArticleDOI

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.
ReportDOI

Financial Dependence and Growth

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.
BookDOI

Financial development and economic growth : views and agenda

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

Financial Intermediation and Growth: Causality and Causes

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.
Journal ArticleDOI

Finance, entrepreneurship and growth

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.
Related Papers (5)