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Finance, growth and fragility: the role of government

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  • Thorsten Beck

Abstract

This paper offers a critical survey of the literature on the role of financial deepening in economic development, focusing on the role of government. Specifically, I distinguish between the policy view that relates financial sector development to an array of necessary policies and institutions, the historic view that relates financial sector development to historic and cultural factors, and the politics view that explains financial sector development as the result of political conflicts and decisions. These three views of financial sector deepening imply a different role for government. I discuss examples from the developed and developing world and repercussions for current reform discussions.

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  • Thorsten Beck, 2013. "Finance, growth and fragility: the role of government," International Journal of Banking, Accounting and Finance, Inderscience Enterprises Ltd, vol. 5(1/2), pages 49-77.
  • Handle: RePEc:ids:injbaf:v:5:y:2013:i:1/2:p:49-77
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    Cited by:

    1. Emmanuel Carré & Guillaume L’Œillet, 2017. "Une revue de la littérature récente sur le nexus finance-croissance après la crise : apports, limites et pistes de recherche," Revue d'économie financière, Association d'économie financière, vol. 0(3), pages 271-290.
    2. Albuquerque de Sousa, Jose & Beck, Thorsten & van Bergeijk, Peter & Van Dijk, Mathijs A, 2016. "Nascent markets: Understanding the success and failure of new stock markets," CEPR Discussion Papers 11604, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    financial development; economic growth; financial crisis; government policies; government role; financial reforms.;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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