Finance, Financial Sector Policies, and Long-Run Growth

In this paper, authors first review the literature on the relation between finance and growth. Theory provides ambiguous predictions concerning the question of whether financial development exerts a positive, causative impact on long-run economic growth. The second part of this paper reviews the literature on the historical and policy determinants of financial development. Governments play a central role in shaping the operation of financial systems and the degree to which large segments of the financial system have access to financial services. The authors discuss the relationship between financial sector policies and economic development. The remainder of the paper proceeds as follows. Sections one and two review theory and evidence on the relation between finance and growth. Section three turns to an examination of financial sector policies, and section four concludes.

Bibliographic Details

Main Authors:	Levine, Ross, Demirgüç-Kunt, Asli
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2008
Subjects:	ACCESS TO FINANCIAL SERVICES, ACCESS TO INFORMATION, ACCOUNTING, ACCOUNTING STANDARDS, ACTIVE MARKETS, AGENCY PROBLEM, ALLOCATION OF CAPITAL, ALLOCATION OF CREDIT, AMOUNT OF CAPITAL, BANK = DEPOSIT, BANK BRANCH, BANK CREDIT, BANK DOMESTIC CREDIT, BANK INTERMEDIATION, BANK LENDING, BANK PROFITABILITY, BANKING CRISES, BANKING SECTOR, BANKING SECTOR DEVELOPMENT, BANKING SYSTEM, BANKING SYSTEMS, BLACK MARKET, BOND, BOND MARKETS, BONDS, CAPITAL ACCUMULATION, CAPITAL ALLOCATION, CAPITAL FLOWS, CAPITAL GROWTH, CAPITAL INVESTMENT, CAPITAL INVESTMENTS, CAPITAL MARKET, CAPITAL MARKET DEVELOPMENT, CAPITAL MARKETS, CAPITAL STOCK, CENTRAL BANK, CENTRAL BANKS, CHECKS, CIVIL LAW, COMMON LAW, CONSUMPTION EXPENDITURES, CONTRACT ENFORCEMENT, CORPORATE GOVERNANCE, CORPORATE INSIDERS, CREDIT ALLOCATION, CREDIT INFORMATION, CREDIT MARKET, CREDIT RATIONING, CREDIT SCORING, CREDITOR, CREDITORS, CREDITWORTHINESS, CURRENCY, DEPOSIT MONEY BANKS, DEPOSITORS, DEPOSITS, DEVELOPING COUNTRIES, DIVERSIFIED PORTFOLIO, DIVERSIFIED PORTFOLIOS, DOMESTIC EQUITIES, DUMMY VARIABLES, ECONOMIC AGENTS, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC POLICIES, ECONOMIES OF SCALE, ENFORCEMENT MECHANISMS, ENFORCEMENT OF CONTRACTS, ENTREPRENEURS, EQUITY MARKETS, EXCHANGE RATE, EXPROPRIATIONS, EXTERNAL CAPITAL, EXTERNAL FINANCE, EXTERNAL FINANCING, EXTERNAL INVESTORS, FAMILIES, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL INTERMEDIARIES, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL REVOLUTION, FINANCIAL SECTOR POLICIES, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCING OBSTACLES, FINANCING REQUIREMENTS, FISCAL DISCIPLINE, FISCAL POLICIES, FISCAL POLICY, FIXED ASSETS, FIXED COST, FLOW OF INFORMATION, FOREIGN EXCHANGES, GOVERNMENT INTERVENTION, GOVERNMENT POLICIES, GOVERNMENT REGULATION, GOVERNMENT SECURITIES, GOVERNMENT SPENDING, GOVERNMENT SUBSIDIES, GROWTH OPPORTUNITIES, HOLDING, HOLDINGS, HUMAN CAPITAL, INFLATION, INFLATION RATE, INFLATION RATES, INFORMATION ASYMMETRIES, INFORMATION DISCLOSURE, INFORMATION SYSTEMS, INFORMATIONAL ASYMMETRIES, INSURANCE, INTEREST RATE, INTEREST RATE SPREADS, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL ECONOMICS, INVESTING, INVESTMENT BANKING, INVESTMENT DECISIONS, INVESTMENT FUNDS, INVESTMENT OPPORTUNITIES, LACK OF CAPITAL, LEGAL SYSTEM, LEGAL SYSTEM ADAPTABILITY, LEGAL SYSTEMS, LEGAL TRADITIONS, LENDERS, LENDING DECISIONS, LIQUID ASSETS, LIQUID MARKETS, LIQUIDITY RISK, LONG-TERM CAPITAL, LONG-TERM DEBT, LONG-TERM INVESTMENTS, MACROECONOMIC ENVIRONMENT, MACROECONOMIC INSTABILITY, MACROECONOMIC POLICIES, MACROECONOMIC STABILITY, MARKET CONDITIONS, MARKET DEVELOPMENT, MARKET FAILURES, MARKET INTEGRATION, MARKET LIQUIDITY, MARKET PARTICIPANTS, MARKET SIZE, MARKET TRANSACTION, MICRO DATA, MINORITY SHAREHOLDERS, MONETARY FUND, MONETARY POLICY, MUTUAL FUNDS, NATIONAL SAVINGS, NATIONAL STOCK EXCHANGE, NATIONAL STOCK EXCHANGES, OUTSIDE INVESTORS, OWNERSHIP STRUCTURE, POLITICAL ECONOMY, POLITICAL STABILITY, PORTFOLIO, PRICE MOVEMENTS, PRIVATE CREDIT, PRIVATE ENTERPRISES, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATE PROPERTY, PRIVATE REGISTRIES, PROPERTY RIGHTS, PROPERTY RIGHTS PROTECTION, PURCHASING POWER, RATES OF RETURN, REAL INTEREST, REAL INTEREST RATES, RETURNS, RISK DIVERSIFICATION, RISK MANAGEMENT, RISK MANAGEMENT SERVICES, RISK SHARING, SAVINGS RATE, SAVINGS RATES, SECURITIES, SECURITIES MARKETS, SETTLEMENT, SHAREHOLDER, SHAREHOLDERS, SHORT-TERM BORROWING, SMALL BUSINESS, SMALL BUSINESS LENDING, STOCK EXCHANGES, STOCK MARKET, STOCK MARKET CAPITALIZATION, STOCK MARKET DEVELOPMENT, STOCK MARKETS, STOCK RETURN, STOCKS, SUPERVISORY AGENCIES, TAX, TAX SYSTEMS, TRADING, TRANSACTION, TRANSACTION COSTS, TRANSACTIONS COSTS, TRANSITION COUNTRIES, TURNOVER,
Online Access:	http://documents.worldbank.org/curated/en/644501468149692967/Finance-financial-sector-policies-and-long-run-growth https://hdl.handle.net/10986/28021
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