Stock Market Development and Long-Run Growth.
Is the financial system important for economic growth? One line of research argues that it is not; another line stresses the importance of the financial system in mobilizing savings, allocating capital, exerting corporate control, and easing risk management. Moreover, some theories provide a conceptual basis for the belief that larger, more efficient stock markets boost economic growth. This article examines whether there is a strong empirical association between stock market development and long-run economic growth. Cross-country growth regressions suggest that the predetermined component of stock market development is positively and robustly associated with long-run economic growth. Copyright 1996 by Oxford University Press.
Year of publication: |
1996
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Authors: | Levine, Ross ; Zervos, Sara |
Published in: |
World Bank Economic Review. - World Bank Group. - Vol. 10.1996, 2, p. 323-39
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Publisher: |
World Bank Group |
Saved in:
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