A country"s level of financial development and the legal environment in which financial intermediaries and markets operate critically influence economic development. In countries whose financial sectors are more fully developed and whose legal systems protect the rights of outside investors, economies grow faster, industries dependent on external finance expand more quickly, new firms are created more easily, firms have more access to external financing, and firms grow faster.
|Statement||Thorsten Beck ... [et al].|
|Series||Policy research working paper ;, 2423, Policy research working papers (Online) ;, 2423.|
|Contributions||Beck, Thorsten., World Bank. Development Research Group. Finance.|
|The Physical Object|
|LC Control Number||2002616214|
Provides an overview of theoretical and empirical advances that support the notion that financial structure is important for economic development and endogenous to its industrial structure. The New Structural Economics argues that countries that pursue a comparative advantage-following development strategy perform better than other countries. The optimal financial structure changes, becoming more market-oriented, as economies develop. August A country's level of financial development and the legal environment in which financial intermediaries and markets operate critically influence economic development. In countries whose financial sectors are more fully developed and whose legal systems protect the rights of outside investors, economies grow faster, industries dependent on external finance expand more quickly, . Financial Structure and Economic Growth: A Cross-country Comparison of Banks, Markets, and Development FINANCIAL STRUCTURE AND ECONOM . Books Division. Chicago Distribution Center. SUBSCRIBE. LOG IN SEARCH. Search in: Advanced Economic Development and Cultural Change John G. Gurley and E. S. Shaw, "Financial Structure and Economic Development," Economic Development and Cultural Cha .
PDF | On Jan 1, , Asli Demirguc and others published Financial Structure and Economic Growth: Perspectives and Lessons | Find, read and cite all the research you need on ResearchGate. This paper examines how a country’s financial structure affects economic growth through its impact on how corporations raise and manage funds. We define a country’s financial structure to consist of the institutions, financial technology, and rules of the game that define how financial activity is organized at a point in time. We emphasize that the aspects of financial structure that. In this paper, we examine the relationship between the structure of the real economy and a country's financial system. We consider whether the development of the real economic structure can predict the direction of evolution of a country's financial structure. The authors explore the relationship between financial structure - the degree to which a financial system is market- or bank-based - and economic development. They use three methodologies: 1) The cross-country approach uses cross-country data to assess whether economies grow faster with market- or bank-based systems.
The question of how financial structure relates to economic development departs from a distinction between an economy’s infrastructure of real wealth – its physical assets produced by human labour and natural resources – and a set of financial claims that exists side by side with it and is somehow connected with it. Founded in , the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals. Adverse selection Asymmetric information Capital controls Credit rationing Development banks Financial intermediaries Financial intermediation Financial interrelations ratio Financial liberalization Financial repression Financial structure and economic development Goldsmith, R. Interest-rate liberalization Kalecki, M. Microcredit Moneylenders. Financial intermediaries and markets can alleviate market frictions through producing information and risk sharing in different ways. In practice, the structure of financial systems can be bank-based or market-based, varying across countries. The influence of financial structure on economic growth is dependent on the overall development of the real economy and institutions.