. - Financial development ; Growth ; Volatility ; Diversification ; Mean-variance effciency …We study how financial market effciency affects a measure of diversification of output across industrial sectors … and for various levels of disaggregation, we construct a benchmark measure of diversification as the set of allocations of …

This paper provides evidence that domestic opportunities to share risk have contributed to slower growth. We first … provide a simple model economy that demonstrates how a country's ability to diversify risk is linked to its growth rate. In … domestic opportunities to diversify risk and growth. We employ two econometric procedures: (1) traditional instrumental …

We report evidence that the relation between the financial sector share, private savings and growth in the United … between financial development and growth evolves in a stepwise fashion. Theoretical models where financial market extensions …

This study investigates the linkage between portfolio investment and economic growth in 18 developed and 27 developing … level. The results of our analysis show that long-term portfolio investment is positively associated with economic growth in … developing countries. Long-term portfolio investment through non-interest-bearing assets contribute more to economic growth in …

sectors, with end effects on state-level volatility. The change cannot be explained simply by shifts in sector-level returns … and volatility. A reallocation effect is at play, which we study in the context of mean-variance portfolio theory applied …

technological diversification. Production makes use of different input varieties, which are subject to imperfectly correlated shocks …. As in endogenous growth models, technological progress increases the number of varieties, raising average productivity …. In our model, the expansion in the number of varieties provides diversification benefits against variety-specific shocks …