This paper examines the dynamic impact of both bank- and market-based financial development on economic growth in … to examine this linkage. Unlike certain previous studies, this study uses both bank- and market-based financial …

matter for the relative merits of bank-based and market-based financial systems. Market-based systems work better in low rule … of law countries, while bank-based systems are more efficient in high-rule of law countries. These results are consistent … with the premise that market-based systems’ superiority in solving the incomplete information problem dominates over bank …

control for banks' financial strength. Our results challenge the idea that bank credit fosters economic growth and that … from the presence of foreign-owned banks. To this end, we introduce some refined measures of financial development and … foreign-owned banks are indisputably a positive addition to local markets able to foster economic growth …