IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Does financial intermediation matter for macroeconomic efficiency?

  • Pierre-Guillaume Méon
  • Laurent Weill

This paper investigates whether financial intermediary development influences macroeconomic technical efficiency on a sample of 47 countries, both developed and developing, over 1980-1995. We do so by applying Battese and Coelli (1995)’s method at the aggregate level. It is found that financial intermediary development, except financial depth, is on average associated with more efficiency. However we find strong evidence that this relationship is conditional on the level of economic development. The lower economic development the weaker is the impact of financial development on efficiency. That impact can even become negative in the poorest countries.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://dipot.ulb.ac.be/dspace/bitstream/2013/8430/1/pgm-0039.pdf
Download Restriction: no

Paper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 07-009.RS.

as
in new window

Length: 22 p.
Date of creation: Apr 2007
Date of revision:
Publication status: Published by: Centre Emile Bernheim, Bruxelles
Handle: RePEc:sol:wpaper:07-009
Contact details of provider: Postal: CP114/03, 42 avenue F.D. Roosevelt, 1050 Bruxelles
Phone: +32 (0)2 650.48.64
Fax: +32 (0)2 650.41.88
Web page: http://difusion.ulb.ac.be
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. repec:ulb:ulbeco:2013/134392 is not listed on IDEAS
  2. Pierre-Guillaume Méon & Khalid Sekkat, 2008. "Institutional Quality And Trade: Which Institutions? Which Trade?," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 227-240, 04.
  3. Thierry Lallemand & Robert Plasman & Francois Rycx, 2007. "Wage Structure and Firm Productivity in Belgium," NBER Working Papers 12978, National Bureau of Economic Research, Inc.
  4. Levine, Ross & Loayza, Norman & Beck, Thorsten, 2000. "Financial intermediation and growth: Causality and causes," Journal of Monetary Economics, Elsevier, vol. 46(1), pages 31-77, August.
  5. Ariane Chapelle & Ariane Szafarz, 2005. "Controlling firms through the majority voting rule," Working Papers CEB 05-004.RS, ULB -- Universite Libre de Bruxelles.
  6. Felix Rioja & Neven Valev, 2004. "Finance and the Sources of Growth at Various Stages of Economic Development," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 127-140, January.
  7. Pierre-Guillaume Méon & Laurent Weill, 2005. "Does better governance foster efficiency? An aggregate frontier analysis," ULB Institutional Repository 2013/8368, ULB -- Universite Libre de Bruxelles.
  8. Loayza, Norman V. & Ranciere, Romain, 2006. "Financial Development, Financial Fragility, and Growth," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 38(4), pages 1051-1076, June.
  9. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
  10. Beck, Thorsten & Levine, Ross & Loayza, Norman, 1999. "Finance and the sources of growth," Policy Research Working Paper Series 2057, The World Bank.
  11. Boyd, John H. & Prescott, Edward C., 1986. "Financial intermediary-coalitions," Journal of Economic Theory, Elsevier, vol. 38(2), pages 211-232, April.
  12. Pierre-Guillaume Méon & Laurent Weill, 2003. "Can Mergers in Europe Help Banks Hedge Against Macroeconomic Risk," Working Papers of LaRGE Research Center 2003-05, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
  13. Michele Cincera, 2005. "The link between firms' R&D by type of activity and source of funding and the decision to patent," DULBEA Working Papers 05-10.RS, ULB -- Universite Libre de Bruxelles.
  14. Khalid Sekkat & Marie-Ange Veganzones, 2005. "Trade and foreign exchange liberalization, investment climate and FDI in the MENA," DULBEA Working Papers 05-06.RS, ULB -- Universite Libre de Bruxelles.
  15. repec:ner:tilbur:urn:nbn:nl:ui:12-3125506 is not listed on IDEAS
  16. Robert Plasman & Michael Rusinek & François Rycx, 2006. "Wages and the bargaining regime under multi-level bargaining: Belgium, Denmark and Spain," DULBEA Working Papers 06-01.RS., ULB -- Universite Libre de Bruxelles.
  17. Sanford J. Grossman & Oliver D. Hart, 1982. "Corporate Financial Structure and Managerial Incentives," NBER Chapters, in: The Economics of Information and Uncertainty, pages 107-140 National Bureau of Economic Research, Inc.
  18. Gannon, Brenda & Plasman, Robert & Rycx, Francois & Tojerow, Ilan, 2005. "Inter-Industry Wage Differentials and the Gender Wage Gap: Evidence from European Countries," IZA Discussion Papers 1563, Institute for the Study of Labor (IZA).
  19. Kneller, Richard & Andrew Stevens, Philip, 2003. "The specification of the aggregate production function in the presence of inefficiency," Economics Letters, Elsevier, vol. 81(2), pages 223-226, November.
  20. King, Robert G. & Levine, Ross, 1993. "Finance and growth : Schumpeter might be right," Policy Research Working Paper Series 1083, The World Bank.
  21. Francesco Caselli, 2005. "Accounting for Cross-Country Income Differences," CEP Discussion Papers dp0667, Centre for Economic Performance, LSE.
  22. Michele Cincera & Henri Capron, 2012. "Capital humain et processus de création d’entreprise: Le cas des primo-créateurs wallons," ULB Institutional Repository 2013/147102, ULB -- Universite Libre de Bruxelles.
  23. repec:ner:tilbur:urn:nbn:nl:ui:12-3125518 is not listed on IDEAS
  24. Thierry Lallemand & Robert Plasman & François Rycx, 2007. "The establishment-size wage premium: evidence from European countries," Empirica, Springer, vol. 34(5), pages 427-451, December.
  25. King, Robert G. & Levine, Ross, 1993. "Finance and growth : Schumpeter might be right," Policy Research Working Paper Series 1083, The World Bank.
  26. MARTINEZ-MONGAY Carlos & SEKKAT Khalid, . "The Tradeoff between Efficiency and Macroeconomic Stabilization in Europe," EcoMod2003 330700095, EcoMod.
  27. Lallemand, Thierry & Plasman, Robert & Rycx, Francois, 2005. "Women and Competition in Elimination Tournaments: Evidence from Professional Tennis Data," IZA Discussion Papers 1843, Institute for the Study of Labor (IZA).
  28. repec:ner:tilbur:urn:nbn:nl:ui:12-3125520 is not listed on IDEAS
  29. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 1999. "A new database on financial development and structure," Policy Research Working Paper Series 2146, The World Bank.
  30. De Gregorio, Jose & Guidotti, Pablo E., 1995. "Financial development and economic growth," World Development, Elsevier, vol. 23(3), pages 433-448, March.
  31. Lallemand, Thierry & Rycx, Francois, 2005. "Establishment Size and the Dispersion of Wages: Evidence from European Countries," IZA Discussion Papers 1778, Institute for the Study of Labor (IZA).
  32. T. Biebuyck & Ariane Chapelle & Ariane Szafarz, 2005. "Les leviers de contrôle des actionnaires majoritaires," ULB Institutional Repository 2013/719, ULB -- Universite Libre de Bruxelles.
  33. Emanuele Ciriolo, 2005. "Inequity aversion and trustees' reciprocity in the trust game," DULBEA Working Papers 05-20.RS, ULB -- Universite Libre de Bruxelles.
  34. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May.
  35. Rioja, Felix & Valev, Neven, 2004. "Does one size fit all?: a reexamination of the finance and growth relationship," Journal of Development Economics, Elsevier, vol. 74(2), pages 429-447, August.
  36. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
  37. Didier Baudewyns & Benoît Bayenet & Robert Plasman & Catherine Van Den Steen, 2006. "Impact de la fiscalité et des dépenses communales sur la localisation intra-métropolitaine des entreprises et des ménages: Bruxelles et sa périphérie," DULBEA Working Papers 06-08.RR, ULB -- Universite Libre de Bruxelles.
  38. Pierre-Guillaume Méon & Anne-France Delannay, 2006. "The impact of European integration on the nineties' wave of mergers and acquisitions," DULBEA Working Papers 06-12.RS, ULB -- Universite Libre de Bruxelles.
  39. Lee C. Adkins & Ronald L. Moomaw & Andreas Savvides, 2002. "Institutions, Freedom, and Technical Efficiency," Southern Economic Journal, Southern Economic Association, vol. 69(1), pages 92-108, July.
  40. Michel Beine & Oscar Bernal Diaz, 2005. "Why do Central Banks intervene secretly? preliminary evidence of the BoJ," DULBEA Working Papers in, ULB -- Universite Libre de Bruxelles.
  41. DellAriccia, Giovanni & Marquez, Robert, 2005. "Lending Booms and Lending Standards," CEPR Discussion Papers 5095, C.E.P.R. Discussion Papers.
  42. Pierre-Guillaume Méon & Giuseppe Diana, 2008. "Monetary policy in the presence of asymmetric wage indexation," ULB Institutional Repository 2013/8354, ULB -- Universite Libre de Bruxelles.
  43. Patrick Honohan, 2004. "Financial development, growth, and poverty: how close are the links?," Policy Research Working Paper Series 3203, The World Bank.
  44. Michel Beine & Pierre-Yves Preumont & Ariane Szafarz, 2006. "Sector diversification during crises: a European perspective," DULBEA Working Papers 06-07.RS, ULB -- Universite Libre de Bruxelles.
  45. Thorsten Beck & Ross Levine, 2002. "Stock Markets, Banks, and Growth: Panel Evidence," NBER Working Papers 9082, National Bureau of Economic Research, Inc.
  46. Maria Jepsen & Sile Padraigin O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," DULBEA Working Papers 05-17, ULB -- Universite Libre de Bruxelles.
  47. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  48. Michele Cincera & Verena Bikar & Henri Capron, 2006. "An integrated evaluation scheme of innovation systems from an institutional perspective," DULBEA Working Papers 06-09.RS, ULB -- Universite Libre de Bruxelles.
  49. repec:ner:tilbur:urn:nbn:nl:ui:12-3125519 is not listed on IDEAS
  50. Weill, Laurent, 2006. "On the consistency of aggregate production frontiers," European Journal of Operational Research, Elsevier, vol. 172(1), pages 326-333, July.
  51. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
  52. Frederic Mishkin, 2005. "Is Financial Globalization Beneficial?," NBER Working Papers 11891, National Bureau of Economic Research, Inc.
  53. Rajan, Raghuram G, 1994. "Why Bank Credit Policies Fluctuate: A Theory and Some Evidence," The Quarterly Journal of Economics, MIT Press, vol. 109(2), pages 399-441, May.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sol:wpaper:07-009. 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: (Benoit Pauwels)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.