Reassessing the impact of finance on growth
Year: 2012
Type: preprint
Abstract: 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.
Authors: Stephen G. Cecchetti, Enisse Kharroubi
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1945199243