Banking, Credit Market Imperfection and Economic Growth
We develop a new model that links capital market imperfection to banking emergence and economic growth. It is shown that the banking system emerges endogenously after a first stage of slow economic growth. Interestingly, economic growth increases after the emergence of banking but remains under its potential level. This is due to a credit rationing brake which decreases progressively as the economy develops. Another finding is that a reduction of credit market imperfection reduces the credit rationing stage.
Year of publication: |
2010-09
|
---|---|
Authors: | Nabi, Mahmoud Sami ; Rajhi, Taoufik |
Institutions: | Economic Research Forum (ERF) |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The Institutional Environment and the Banking - Growth Nexus: Theory and Investigation for MENA
Suliman, Mohamed Osman, (2008)
-
Financial Crises’ Prevention and Recovery
Khallouli, Wajih, (2010)
-
Nabi, Mahmoud Sami, (2002)
- More ...