The Evolving Importance of Banks and Securities Markets
AbstractThis paper examines the evolving importance of banks and securities markets during the process of economic development. We find that as countries develop economically, (1) the size of both banks and securities markets increases relative to the size of the economy, (2) the association between an increase in economic output and an increase in bank development becomes smaller, and (3) the association between an increase in economic output and an increase in securities market development becomes larger. The results are consistent with theories predicting that as economies develop, the services provided by securities markets become more important for economic activity, while those provided by banks become less important.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18004.
Date of creation: Apr 2012
Date of revision:
Note: CF EFG IFM
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Other versions of this item:
- Asli Demirgü�-Kunt & Erik Feyen & Ross Levine, 2013. "The Evolving Importance of Banks and Securities Markets," World Bank Economic Review, World Bank Group, vol. 27(3), pages 476-490.
- Demirguc-Kunt, Asli & Feyen, Erik & Levine, Ross, 2011. "The evolving importance of banks and securities markets," Policy Research Working Paper Series 5805, The World Bank.
- F3 - International Economics - - International Finance
- G1 - Financial Economics - - General Financial Markets
- G2 - Financial Economics - - Financial Institutions and Services
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-02 (All new papers)
- NEP-BAN-2012-05-02 (Banking)
- NEP-CBA-2012-05-02 (Central Banking)
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Quelles relations entre structure financiÃ¨re et croissance Ã©conomique ?
by ? in D'un champ l'autre on 2014-03-12 16:26:00
- Didier, Tatiana & Schmukler, Sergio L., 2013.
"The financing and growth of firms in China and India : evidence from capital markets,"
Policy Research Working Paper Series
6401, The World Bank.
- Didier, Tatiana & Schmukler, Sergio L., 2013. "The financing and growth of firms in China and India: Evidence from capital markets," Journal of International Money and Finance, Elsevier, vol. 39(C), pages 111-137.
- Sergio Schmukler & Tatiana Didier, 2013. "The Financing and Growth of Firms in China and India: Evidence from Capital Markets," 2013 Meeting Papers 98, Society for Economic Dynamics.
- Bhattacharyya, Sambit, 2013.
"Political origins of financial structure,"
Journal of Comparative Economics,
Elsevier, vol. 41(4), pages 979-994.
- Sambit Bhattacharyya, 2011. "Political Origins of Financial Structure," Economics Series Working Papers WPS/2011-20, University of Oxford, Department of Economics.
- Sambit Bhattacharyya, 2011. "Political Origins of Financial Structure," CSAE Working Paper Series 2011-20, Centre for the Study of African Economies, University of Oxford.
- Mattana, Elena & Panetti, Ettore, 2012. "Bank Liquidity, Market Participation, and Economic Growth," MPRA Paper 43800, University Library of Munich, Germany, revised Nov 2012.
- Pasali, Selahattin Selsah, 2013. "Where is the cheese ? synthesizing a giant literature on causes and consequences of financial sector development," Policy Research Working Paper Series 6655, The World Bank.
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