Finance and Growth: Theory and Evidence
Ross Levine ()
Chapter 12 in Handbook of Economic Growth, 2005, vol. 1, Part A, pp 865-934 from Elsevier
This paper reviews, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth. While subject to ample qualifications and countervailing views, the preponderance of evidence suggests that both financial intermediaries and markets matter for growth and that reverse causality alone is not driving this relationship. Furthermore, theory and evidence imply that better developed financial systems ease external financing constraints facing firms, which illuminates one mechanism through which financial development influences economic growth. The paper highlights many areas needing additional research.
JEL-codes: O0 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (405) Track citations by RSS feed
Downloads: (external link)
http://www.sciencedirect.com/science/article/B7P5F ... 1822fb3a4f06b740f651
Full text for ScienceDirect subscribers only
Working Paper: Finance and Growth: Theory and Evidence (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:grochp:1-12
Access Statistics for this chapter
More chapters in Handbook of Economic Growth from Elsevier
Series data maintained by Zhang, Lei ().