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Banks, Growth And Geography

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  • Raju Jan SINGH

Abstract

This paper presents a general equilibrium endogenous growth model, in which financial intermediaries evaluate the quality of projects, mobilize savings to finance the most promising ones and diversify risk. Information technology available to banks is linked to geographic proximity. This evaluation capacity increases the proportion of high-return projects being financed, and thereby accelerates economic growth. This positive effect does not depend on the degree of individuals´ risk aversion.

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  • Raju Jan SINGH, 1997. "Banks, Growth And Geography," UNCTAD Discussion Papers 127, United Nations Conference on Trade and Development.
    • Handle: RePEc:unc:dispap:127
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    References listed on IDEAS

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    Cited by:

    1. Kangni Kpodar & Maëlan Le Goff & Singh Raju Jan, 2018. "Financial Deepening, Terms of Trade Shocks, and Growth Volatility in Low-Income Countries," Post-Print hal-01907579, HAL.
    2. Mr. Yifei Huang & Mr. Raju J Singh, 2011. "Financial Deepening, Property Rights and Poverty: Evidence From Sub-Saharan Africa," IMF Working Papers 2011/196, International Monetary Fund.
    3. Kpodar, Kangni & Singh, Raju Jan, 2011. "Does financial structure matter for poverty ? evidence from developing countries," Policy Research Working Paper Series 5915, The World Bank.
    4. Singh,Raju & Huang,Yifei, 2016. "Financial channels, property rights, and poverty : a Sub-Saharan African perspective," Policy Research Working Paper Series 7559, The World Bank.
    5. Kangni Kpodar & Maëlan Le Goff & Raju Jan Singh, 2019. "Financial Deepening, Terms of Trade Shocks and Growth in Low-Income Countries," Working papers 719, Banque de France.

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