Financial development, structure and growth: New data, method and results

Arbeitspapier

The existing weight of evidence suggests that financial structure (the classification of a financial system as bank-based versus market-based) is irrelevant for economic growth. This contradicts the common belief that the institutional structure of a financial system matters. We re-examine this issue using a novel dataset covering 69 countries over 1989-2011 in a Bayesian framework. Our results are conformable to the belief - a market-based system is relevant - with sizable economic effects for the high-income but not for the middle-and-low-income countries. Our findings provide a counterexample to the weight of evidence. We also identify a regime shift in 2008.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Cardiff Economics Working Papers ; No. E2016/2

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
• Subject: Financial Structure ; Economic Growth ; Cointegration ; Bayesian Model Averaging ; Structural Breaks

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Luintel, Kul Bahadur ; Khan, Mosahid ; Leon-Gonzalez, Roberto ; Li, Guang Jie
• Event: Veröffentlichung
• (who): Cardiff University, Cardiff Business School
• (where): Cardiff
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/174115
• Last update: 10.03.2025, 11:41 AM CET