Can Financial Infrastructures Foster Economic Development?
AbstractIn this paper, financial infrastructures increase the efficiency of the banking sector: they decrease the market power (due to horizontal differentiation) of the financial intermediaries, lower the cost of capital, increase the number of depositors and the amount of intermediated savings, factors which in turn increase the growth rate and may help countries to take off from a poverty trap. Taxation finances financial infrastructures and decreases the private productivity of capital. Growth and welfare maximising levels of financial infrastructures are computed.
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Bibliographic InfoPaper provided by Banque de France in its series Working papers with number 80.
Length: 18 pages
Date of creation: 2001
Date of revision:
Endogenous growth ; imperfect competition ; financial infrastructures;
Other versions of this item:
- Amable, Bruno & Chatelain, Jean-Bernard, 2001. "Can financial infrastructures foster economic development?," Journal of Development Economics, Elsevier, vol. 64(2), pages 481-498, April.
- Jean-Bernard Chatelain & Bruno Amable, 2001. "Can financial infrastructures foster economic development?," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00112551, HAL.
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
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