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Financial system structure and economic growth: Structure matters

  • Ergungor, O. Emre

This paper investigates how the structure of a financial system--whether it is bank or market-oriented--affects economic growth. In contrast to earlier research, which indicates that the financial system's structure is irrelevant for growth, I find that there is a nonlinear (contingent) relationship between growth and financial structure. Countries that have an inflexible judicial system grow faster when they have a more bank-oriented financial system.

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File URL: http://www.sciencedirect.com/science/article/pii/S1059-0560(06)00083-9
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Article provided by Elsevier in its journal International Review of Economics & Finance.

Volume (Year): 17 (2008)
Issue (Month): 2 ()
Pages: 292-305

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Handle: RePEc:eee:reveco:v:17:y:2008:i:2:p:292-305
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620165

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