We show that financial development has a non-monotonic effect on growth in the Rajan and Zingales (1998) and Fisman and Love (2007) sample. Beyond a threshold, financially dependent industries and industries facing good growth opportunities grow disproportionately more slowly.

Using a comprehensive database of European firms, we study how the volume of private equity investment affects the rate of creation of new firms. Applying cross-country cross-industry analysis, we find that private equity investment in general benefits new business incorporation, especially in...

We study the effect of the integration in interbank markets on the interest rates that are charged on bank loans granted to individual firms. We account for banking sector competition and the selection that arises in the loan request and approval process. We use a comprehensive data set that...

This paper provides evidence that financial openness is an important determinant of growth rate asymmetry in emerging markets. I exploit exogenous shocks to financial flows and examine the impact of equity market liberalization on the skewness of output growth for 93 countries during the...