Demand-Driven Financial Development
The historical record suggests that economic development is associated with the rise of the financial sector. This rise is often triggered by exogenous events such as large budget deficits generated by wars or the availability of large investment projects such as railroads. This paper discusses the role played by such demand factors in financial development and how they favour growth.
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|Date of creation:||1995|
|Date of revision:|
|Publication status:||Published in N. Hermes and R. Lensink, eds, Financial Development and Economic Growth, London: Routledge, 1996, pp. 37-52|
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