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.:
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