Beck, Thorsten; Degryse, Hans; Kneer, E.C. - Tilburg University, Center for Economic Research - 2012
intermediation, on the one hand, and GDP per capita growth and growth volatility, on the other hand. Based on a sample of 77 … countries for the period 1980-2007, we find that intermediation activities increase growth and reduce volatility in the long run … time horizons a large financial sector stimulates growth at the cost of higher volatility in high-income countries …