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 HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00112551.
Date of creation: 2001
Date of revision:
Publication status: Published, Journal of Development Economics, 2001, 64, 2, 481-498
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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.
- Amable, B. & Chatelain, J.-B., 2001. "Can Financial Infrastructures Foster Economic Development?," Working papers 80, Banque de France.
- 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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