Reassessing the impact of finance on growth
AbstractThis paper investigates how financial development affects aggregate productivity growth. Based on a sample of developed and emerging economies, we first show that the level of financial development is good only up to a point, after which it becomes a drag on growth. Second, focusing on advanced economies, we show that a fast-growing financial sector is detrimental to aggregate productivity growth.
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Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 381.
Length: 22 pages
Date of creation: Jul 2012
Date of revision:
Growth; financial development; credit booms; R&D intensity; financial dependence;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-29 (All new papers)
- NEP-BAN-2012-07-29 (Banking)
- NEP-EFF-2012-07-29 (Efficiency & Productivity)
- NEP-FDG-2012-07-29 (Financial Development & Growth)
- NEP-MFD-2012-07-29 (Microfinance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cahuc, Pierre & Challe, Edouard, 2009.
"Produce or Speculate? Asset Bubbles, Occupational Choice and Efficiency,"
IZA Discussion Papers
4630, Institute for the Study of Labor (IZA).
- Pierre Cahuc & Edouard Challe, 2012. "Produce Or Speculate? Asset Bubbles, Occupational Choice, And Efficiency," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(4), pages 1105-1131, November.
- Cahuc, Pierre & Challe, Edouard, 2009. "Produce or Speculate? Asset Bubbles, Occupational Choice and Efficiency," CEPR Discussion Papers 7602, C.E.P.R. Discussion Papers.
- Cahuc, P. & Challe, E., 2010. "Produce or speculate? Asset bubbles, occupational choice and efficiency," Working papers 298, Banque de France.
- Stephen Cecchetti & Madhusudan Mohanty & Fabrizio Zampolli, 2011. "The real effects of debt," BIS Working Papers 352, Bank for International Settlements.
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