IDEAS home Printed from
   My bibliography  Save this paper

Contributions of Financial Systems to Growth in OECD Countries


  • Michael Leahy
  • Sebastian Schich
  • Gert Wehinger
  • Florian Pelgrin
  • Thorsteinn Thorgeirsson


The recent period of sustained high growth in the United States has drawn attention to its financial system and the efficiency with which it seems to be able to channel funds to new productive investment projects, particularly in hi-tech industries. This study examines the role played by the financial systems in OECD countries and how they affect resource allocation and growth. It provides evidence suggesting that legal and regulatory framework conditions for financial systems, and particularly their enforcement and transparency, support innovation and investment in new enterprises. In addition, using dynamic panel regression techniques, the study finds significant relationships between investment and financial development, as measured by indicators of the scale of financial activity. Evidence is also found of significant relationships between financial development and growth — over and above the links via investment — indicating impacts via overall economic efficiency ... La forte croissance soutenue aux États-Unis pendant la période récente a attiré l’attention sur son système financier et l’efficacité avec laquelle il semble être capable de financer des nouveaux projets d’investissement productif, en particulier dans les industries de haute technologie. Cette étude examine le rôle joué par les systèmes financiers dans les pays de l’OCDE et comment ils influent sur l’allocation des ressources et la croissance. Elle prouve à l’évidence que les systèmes financiers réunissant les conditions d’un cadre institutionnel et réglementaire, en particulier dans l’exécution et la transparence, contribuent à l’innovation et l’investissement dans de nouvelles entreprises. De plus, en utilisant des techniques de régression dynamique en panel, l’étude constate des relations significatives entre l’investissement et le développement financier, qui servent d’indicateurs de l’échelle de l’activité financière. Il parait tout aussi évident qu’il y a une relation entre ...

Suggested Citation

  • Michael Leahy & Sebastian Schich & Gert Wehinger & Florian Pelgrin & Thorsteinn Thorgeirsson, 2001. "Contributions of Financial Systems to Growth in OECD Countries," OECD Economics Department Working Papers 280, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:280-en

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    actionnaires; analyse par panel; creditors; croissance; créanciers; development; développement; enforcement; financial systems; growth; innovation; innovation; investissement; investment; panel analysis; recouvrement; shareholders; système financier; transparence; transparency;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:280-en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.