Finance and Growth: Schumpeter Might Be Right

Robert G. King and Ross Levine ()

The Quarterly Journal of Economics, 1993, vol. 108, issue 3, 717-737

Abstract: We present cross-country evidence consistent with Schumpeter's view that the financial system can promote economic growth, using data on 80 countries over the 1960–1989 period. Various measures of the level of financial development are strongly associated with real per capita GDP growth, the rate of physical capital accumulation, and improvements in the efficiency with which economies employ physical capital. Further, the predetermined component of financial development is robustly correlated with future rates of economic growth, physical capital accumulation, and economic efficiency improvements.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (3734)

Downloads: (external link)
http://hdl.handle.net/10.2307/2118406 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Finance and growth: Schumpeter might be right (1993)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:108:y:1993:i:3:p:717-737.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().