economic growth in 19th century Germany. We apply a structural VAR framework to a new annual data set from 1870 to 1912 that … two-sector growth model. We find that all sectors were affected significantly by shocks from the banking system …, transportation and agriculture. In this regard, the growth patterns in 19th century Germany are reminiscent to those in today …

There is no agreement regarding the growth-enhancing effects of financial liberalization, mainly because it is … liberalization also has led to higher GDP growth. In fact, the fastestgrowing countries are typically those that have experienced … boom-bust cycles. That is, there is a positive link between GDP growth and the bumpiness of credit, which is captured by …

Mexico, a prominent liberalizer, failed to attain stellar gross domestic product (GDP) growth in the 1990s, and since … 2001 its GDP and exports have stagnated. In this paper we argue that the lack of spectacular growth in Mexico cannot be … extraordinary growth of exports and foreign domestic investment (FDI). The key to the Mexican puzzle lies in Mexico s response to …

We address the question of whether growth and welfare can be higher in crisis prone economies. First, we show that … there is a robust empirical link between per-capita GDP growth and negative skewness of credit growth across countries with … countries with smooth credit conditions. We then present a two-sector endogenous growth model in which financial crises can …

growth, and find that it has a robust negative effect on GDP growth. This link coexists with the negative link between … variance and growth typically found in the literature. To explain the link between crises and growth we present a model where … weak institutions lead to severe financial constraints and low growth. Financial liberalization policies that facilitate …

Occasional crises have been shown to be part of growth enhancing mechanism (see Rancière, Tornell and Westermann, 2008 …). In this paper, we document that neither the stereotypical case study of India vs. Thailand, nor the benchmark growth … the negative skewness of credit growth, and per-capita output growth still remains intact. …