of development. We document the following regularities. First, as countries develop, their productive structure moves … from more volatile to less volatile sectors. Second, the level of specialization declines with development at early stages …, and slowly increases at later stages of development. Third, the volatility of country-specific macroeconomic shocks falls …

Interactions between economic development and financial development are studied by looking at the roles of financial … institutions in selecting R&D projects (including for both imitation and innovation). Financial development is regarded as the … development stages of an economy. At higher development stages a financing regime with ex post selection capacity is more …