The authors study the apparent contradiction between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of financial depth as measured by, for instance, private domestic credit...

The authors explore the relationship between financial structure - the degree to which a financial system is market- or bank-based - and economicdevelopment. They use three methodologies: 1) The cross-country approach uses cross-country data to assess whether economies grow faster with market-...

Gabon is currently one of the richest countries in Sub-Saharan Africa, having a GDP per capita of close to $4,000, and is characterized by a stable political climate and rich forestry and mineral resources, aswell as a small population. Oil is the key economic sector, accounting for half of GDP...

Developing countries became full-fledged participants in multilateral trade negotiations only with the Uruguay Round, during which they succeeded in bringing agriculture into the GATT/WTO, reaching agreement on phasing out the Multi-Fibre Arrangement within ten years, and beginning work on...

An important area of research in recent years involves assessing the microeconomic implications of macro-level policies-particularly those related to international trade. While a wide range of research methodologies are available for assessing the microeconomic incidence of micro-policies, as...

A well developed financial system enhances competition in the industrial sector by allowing easier entry. The impact varies across industries, however. For some, small changes in financial development quickly induce entry and dissipate incumbents'rents, generating strong incentives to oppose...

In this paper, developed as part of the World Bank's Poverty Reduction Strategy Sourcebook, the authors examine how to implement trade liberalization as part of a strategy for alleviating poverty in developing countries. They discuss trade policy instruments, institutions, complementary...

Banking sector openness may directly affect growth by improving the access to financial services and indirectly by improving the efficiency of financial intermediaries, both of which reduce the cost of financing, and in turn, stimulate capital accumulation and economic growth. The objective of...

The causal link between finance and growth is one of the most striking empirical macroeconomic relationships uncovered in the past decade. As this branch of the literature matures, the focus shifts from growth to other aspects of economic prosperity, and from financial depth to multidimensional...

The authors investigate the policy and non-policy factors behind saving disparities, using a large panel data set and an encompassing approach including several relevant determinants of private saving. They extend the literature in several dimensions, by: 1) Using the largest data set on...