Financial markets, Banks, and Growth: disentangling the links

Alessandro Giovannini, Maurizio Iacopetta () and Raoul Minetti

No 2013-23, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: The paper reviews the state of the economic literature on the link between nancial development and growth. We rst examine the issue of measurement of nancial development and the debate on the direction of causality between nance and growth. Next, we extensively discuss the various channels through which the nancial sector can aect growth, including the increase in the eciency of capital allocation, the reduction in information costs, the improvement of risk management, and the support of innovation. The analysis is conducted referring both to the theoretical literature and to the most recent empirical ndings. We conclude by drawing lessons for the current debate on the reform of the nancial sector in the aftermath of the Great Recession. Classification-G0, G2, O1,O3

Keywords: Financial Development; Growth; banks; stock markets; crises (search for similar items in EconPapers)
Date: 2013-10
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Financial Markets, Banks, and Growth: Disentangling the links (2013)
Working Paper: Financial Markets, Banks, and Growth: Disentangling the links (2013)
Working Paper: Financial Markets Banks and Growth: Disentangling the Links (2013)
Working Paper: Financial Markets, Banks, and Growth: Disentangling the links (2013)
Working Paper: Financial Markets Banks and Growth: Disentangling the Links (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:1323

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