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. As economies develop, they increase their demand for the services provided by securities markets relative to those provided by banks, such that securities markets become increasingly important for future economic development. Some exploratory evidence further suggests that deviations of a country’s actual financial structure -- the mixture of banks and markets operating in an economy -- from the estimated optimal structure are associated with lower levels of economic activity.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5805.
Date of creation: 01 Sep 2011
Date of revision:
Debt Markets; Economic Theory&Research; Banks&Banking Reform; Markets and Market Access; Access to Finance;
Other versions of this item:
- Asli Demirguc-Kunt & Erik Feyen & Ross Levine, 2012. "The Evolving Importance of Banks and Securities Markets," NBER Working Papers 18004, National Bureau of Economic Research, Inc.
- 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-2011-10-01 (All new papers)
- NEP-BAN-2011-10-01 (Banking)
- NEP-FMK-2011-10-01 (Financial Markets)
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- 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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