The Evolving Importance of Banks and Securities Markets

Asli Demirguc-Kunt, Erik Feyen and Ross Levine ()

No 18004, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the evolving importance of banks and securities markets during the process of economic development. We find that as countries develop economically, (1) the size of both banks and securities markets increases relative to the size of the economy, (2) the association between an increase in economic output and an increase in bank development becomes smaller, and (3) the association between an increase in economic output and an increase in securities market development becomes larger. The results are consistent with theories predicting that as economies develop, the services provided by securities markets become more important for economic activity, while those provided by banks become less important.

JEL-codes: F3 G1 G2 O16 (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-ban and nep-cba
Note: CF EFG IFM
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Citations: View citations in EconPapers (28)

Published as Asli Demirgü�-Kunt & Erik Feyen & Ross Levine, 2013. "The Evolving Importance of Banks and Securities Markets," World Bank Economic Review, World Bank Group, vol. 27(3), pages 476-490.

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Related works:
Journal Article: The Evolving Importance of Banks and Securities Markets (2013)
Working Paper: The evolving importance of banks and securities markets (2011)
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