In this paper we explore empirically a long-standing question in the literature on finance for growth, namely whether the financial structure -in terms of the size of the banking system relative to the capital market- matters for economic growth. We build upon the existing literature by...

Over recent decades, stock markets across the globe have developed tremendously taking a major role, similar to banks' role, in financing firms. This persuaded economists to return with the old debate initiated by Goldsmith (1969) regarding financial structure. The bank-based system advocates...