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Finance and Growth: Some Theoretical Considerations and a Review of the Empirical Literature

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  • Kotaro Tsuru

Abstract

This paper aims at providing an overview of the theoretical considerations and a review of the empirical literature on the relationship between finance and growth. Section I describes the role of financial development in economic growth at the macro level, both theoretically and empirically. Section II examines the role of corporate finance in firm-level performance, especially focusing on the role of “internal funds” and “internal capital markets”. Section III presents a comparative analysis of financial systems, and analyses both the Asian crisis and the US venture capital phenomenon from this perspective. Section IV presents some policy implications and conclusions ... L’objectif de ce document est de présenter une vue génerale des considérations théoriques et d’étudier les effets de la littérature empirique sur la relation entre finance et croissance. La section I décrit le rôle du développement financier dans une économie de croissance à un niveau macroéconomique, à la fois théoriquement et empiriquement. La section II examine le rôle des sociétés financières au niveau des performances de l’entreprise en mettant particulièrement l’accent sur le rôle des “marges brutes d’autofinancement” et des “marchés de capitaux internes”. La section III présente une analyse comparative des systèmes financiers et des analyses concernant à la fois la crise asiatique et le phénomène américain de de capital-risque selon cette perspective. La section IV traite de certaines implications politiques et des conclusions ...

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 228.

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Date of creation: 18 Jan 2000
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Handle: RePEc:oec:ecoaaa:228-en

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Keywords: growth; financial constraint; financial systems; financial development; Asian crisis; venture capital; capital-risque; croissance; contraintes financières; système financier; crise asiatique; développement financier;

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  1. Maurizio Iacopetta & Alessandro Giovannini & Raoul Minetti, 2013. "Financial Markets Banks and Growth disentangling the links," Sciences Po publications 2013-13, Sciences Po.
  2. Orji Anthony, 2012. "Bank Savings and Bank Credits in Nigeria: Determinants and Impact on Economic Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 2(3), pages 357-372.
  3. Ibrahim, M.A., 2013. "Financial Development And Economic Growth In Saudi Arabian Economy," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 133-144.
  4. Nacer Bernou & Marceline Grondin, 2001. "Réconciliation entre libéralisation financière et croissance économique dans un système fondé sur la banque," Post-Print halshs-00179981, HAL.
  5. Héctor Gustavo González Padilla, 2012. "Economic Growth and Financial System," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(65-66), pages 61-74, September.
  6. Florent DEISTING & Farid MAKHLOUF & Adil NAAMANE, 2012. "Développement financier, flux financiers et croissance économique," Working Papers 2011-2012_10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Jun 2012.
  7. Antonio Lopes, 2003. "Innovazione nel Sistema Creditizio del Mezzogiorno negli Anni Novanta," CELPE Discussion Papers 74, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  8. Bilge Kagan Ozdemir, 2009. "Banking Sector Stability During The Process Of Euro Adoption," Anadolu University Journal of Social Sciences, Anadolu University, vol. 9(1), pages 123-1236, June.
  9. Block,Thorsten H., 2002. "Financial systems, innovation and economic performance," Research Memorandum 013, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

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