While substantial research finds that financial development boosts overall economic growth, the authors study whether …

The first part of this paper reviews the literature on the relation between finance and growth. The second part of the …

The authors examine whether financial development boosts the growth of small firms more than large firms and hence … provides information on the mechanisms through which financial development fosters aggregate economic growth. They define an … a disproportionately large effect on the growth of industries that are technologically more dependent on small firms …