Rin, Marco Da; Hellmann, Thomas - William Davidson Institute, University of Michigan - 2001
We provide a new theory of the role of banks as catalysts for industrialization. In their influential analysis of 19th … century continental European industrialization, Gerschenkron and Schumpeter accorded banks a central role, arguing that they … promoted the creation of new industries. We formalize this role of banks by introducing financial intermediaries into a 'big …