Financial structure, economic growth and development

Franklin Allen, Xian Gu and Oskar Kowalewski ()

Post-Print from HAL

Abstract: Financial intermediaries and markets can alleviate market frictions through producing information and risk sharing in different ways. In practice, the structure of financial systems can be bank-based or market-based, varying across countries. The influence of financial structure on economic growth is dependent on the overall development of the real economy and institutions. The association is also different during crisis periods and non-crisis periods. Market-based systems tend to have an advantage for financially dependent industries in good times but are a disadvantage in bad times. The recent rapid growth of shadow banking benefits economic growth but also poses additional risks to the financial system and real economy.

Date: 2017-09
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Published in Thorsten Beck (dir); Ross Levine (dir). Handbook of Finance and Development, Edward Elgar Publishing, pp.31-62, 2017

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Financial Structure, Economic Growth and Development (2018)
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:hal:journl:hal-01917114

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().