Reassessing the impact of finance on growth

This paper investigates how financial development affects aggregate productivity growth. Based on a sample of developed and emerging economies, we first show that the level of financial development is good only up to a point, after which it becomes a drag on growth. Second, focusing on advanced economies, we show that a fast-growing financial sector is detrimental to aggregate productivity growth.

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Year of publication:	2012-07
Authors:	Cecchetti, Stephen ; Kharroubi, Enisse
Institutions:	Bank for International Settlements (BIS)
Subject:	Growth \| financial development \| credit booms \| R&D intensity \| financial dependence

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Extent:	application/pdf text/html
Series:	BIS Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 381 22 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010849781