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The paper contributes to the ongoing debate on the natural resource curse, which refers to a negative link between natural resource abundance and economic growth. It shows empirically that resource-rich countries appear to have a less developed financial system and investigates a potential...
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Why do some economic systems depend on bank financing while others rely on capital markets and bond financing? We … propose a political economy model in which elites favor a bank-based system, which increases their rents due to reduced … evolution of the bank-based financial system in Germany since the 19th century. …
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