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Joseph A. Schumpeter is one of the most famous economists of the 20th century and the ’patron saint’ of the finance and growth literature. We have discovered that the prevailing literature has, however, misinterpreted Schumpeter, which leads to puzzling empirical results and difficulties in...
Persistent link: https://www.econbiz.de/10013201693
This paper reviews the theoretical and empirical literature on links between domestic financial development and economic growth. It starts with the pioneers in this field and then classifies two main schools favouring liberal financial regimes. First McKinnon and Shaw advocated financial...
Persistent link: https://www.econbiz.de/10011335226
high number of bank branches and are readily accessible for economic agents. By pooling savings and acting as delegated … the private sector, a higher number of ATMs, bank accounts, and bank branches increases economic growth and reduces income …
Persistent link: https://www.econbiz.de/10012834770
This study discusses the current state of knowledge on the financial development and economic growth by reviewing the most decisive theoretical and empirical contributions. It is obvious that financial development is at least correlated with economic development and that a sound and refined...
Persistent link: https://www.econbiz.de/10012907618
channel. Using quarterly data on short to medium term real GDP growth and cross-border bank lending flows from G-10 countries … foreign bank credit supply and economic growth are compounded in countries with more corruption and less competitive banking …
Persistent link: https://www.econbiz.de/10012855698
This paper argues that excessive financial development in combination with high levels of technological innovation or R&D activities may lead to the former being ineffective in generating economic growth. This hypothesis is examined through a dynamic panel analysis using two measures of...
Persistent link: https://www.econbiz.de/10013034506
between the bank-based side of financial development, as compared to the market-based side of financial development. Given the …
Persistent link: https://www.econbiz.de/10011877345
This paper investigates the effect of bank competition and financial stability on economic growth by examining panel …-data from 38 European countries over 2001 to 2017. Bank competition is measured with the Boone indicator, and bank stability … effect of economic growth, and reverse causality in its estimation. Results show that bank stability significantly …
Persistent link: https://www.econbiz.de/10012176206
of the positive finance-growth relationship after 1989, we show that bank assets contribute indeed negatively, while OTC … insights for policy measures aimed at tackling the crisis, disentangling positive from negative effects of derivatives and bank …
Persistent link: https://www.econbiz.de/10013065801
granular effects: if markets are very concentrated in terms of the size distribution of banks, idiosyncratic shocks at the bank … of itself, and it may also influence concentration in banking and thus the impact of bank-specific shocks for the … micro-macro panel dataset. Our research has three main findings: First, bank-level shocks significantly impact on GDP …
Persistent link: https://www.econbiz.de/10010225571