Download or read book Financial Development and Industrial Capital Accumulation written by Biagio Bossone and published by World Bank Publications. This book was released on 1999 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: There may be a compelling discontinuity to financial sector development in that banks need to be supported early in development but need to be "weakened" later, at the expense of bank rents, to foster further development. The important question for policy is when and how to generate and manage this discontinuity so that it is not forced on society by costly and traumatic events such as bank failures.

Download or read book Financial Development and Industrial Capital Accumulation written by Biagio Bossone and published by . This book was released on 2016 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: There may be a compelling discontinuity to financial sector development in that banks need to be supported early in development but need to be weakened later - at the expense of bank rents - to foster further development. The important question for policy is when and how to generate and manage this discontinuity so that it is not forced on society by costly and traumatic events such as bank failures.In an economy where decisions are decentralized and made under conditions of uncertainty, the financial system can be seen as the complex of institutions, infrastructure, and instruments that society adopts to minimize the costs of trading promises when agents have incomplete trust and limited information.Building on a microeconomic general equilibrium model that portrays such fundamental financial functions, Bossone shows that, in line with recent empirical evidence, the development of financial infrastructure stimulates greater and more efficient capital accumulation.He also shows that economies with more developed financial infrastructure can more easily absorb exogenous shocks to output.The results call for addressing a crucial issue in the sequencing of reform in the financial sector: early in development, banks provide essential financial infrastructure services as part of their exclusive relationships with borrowers. Further economic development requires that such services be provided extrinsically to the bank-borrower relationship, clearly at the expense of bank rents.There may be a compelling discontinuity to financial sector development in that banks need to be supported early in development but to be weakened later - at the expense of bank rents - to foster further development. The important question for policy is when and how to generate and manage this discontinuity so that it is not forced on society by costly and traumatic events such as bank failures.This paper - a product of the Financial Economics Unit, Financial Sector Practice Department - is part of a larger effort in the department to study the links between financial sector and economic development and improve financial sector reform policies.

Download or read book Economic Growth and Financial Development written by Muhammad Shahbaz and published by Springer Nature. This book was released on 2021-09-21 with total page 245 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book looks into the relationship between financial development, economic growth, and the possibility of a potential capital flight in the transmission process. It also examines the important role that financial institutions, financial markets, and country-level institutional factors play in economic growth and their impact on capital flight in emerging economies. By presenting new theoretical insights and empirical country studies as well as econometric approaches, the authors focus on the relationship between financial development and economic growth with capital flight in the era of financial crisis. Therefore, this book is a must-read for researchers, scholars, and policy-makers, interested in a better understanding of economic growth and financial development of emerging economies alike.

Download or read book Financial Development and Economic Growth written by Ross Levine and published by World Bank Publications. This book was released on with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: The International Monetary Fund (IMF) presents the full text of the December 2000 paper entitled "Financial Development and Economic Growth: An Overview," prepared by Mohsin S. Khan and Abdelhak S. Senhadji. The text is available in PDF format and the paper is part of the IMF's Working Paper series. This paper provides a review of literature on financial markets and discusses the relationship between financial development and economic growth.

Download or read book Finance and Growth written by Ross Levine and published by . This book was released on 2004 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This paper reviews, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth. While subject to ample qualifications and countervailing views, the preponderance of evidence suggests that both financial intermediaries and markets matter for growth and that reverse causality alone is not driving this relationship. Furthermore, theory and evidence imply that better developed financial systems ease external financing constraints facing firms, which illuminates one mechanism through which financial development influences economic growth. The paper highlights many areas needing additional research"--NBER website

Download or read book Capital Accumulation and Money written by Lester D. Taylor and published by Springer Science & Business Media. This book was released on 2010-09-10 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt: Capital, Accumulation, and Money: An Integration of Capital, Growth, and Monetary Theory is a book about capital and money. A root concept of capital is formulated that allows for most existing concepts of capital to be unified and related to one another in consistent fashion. Capital and monetary theory are integrated in a non-mathematical framework that imposes a number of constraints on the macro behavior of an economy, constraints which make for the straightforward understanding of such concepts as the real stock of money, real-balance effects, and the general price level. New and illuminating insights are also provided into aggregate supply and demand, natural and money rates of interest, the relationship between real and monetary economies, and economic growth and development. This fully expanded, revised, and updated edition features important new material on a variety of timely topics, including: * Factors leading to the financial meltdown and turmoil of 2007-09; * Why bubbles form in asset markets and how these impact on the real economy; * The importance of a lender-of-last-resort in times of financial stress; * Future financing and funding of the U. S. Social Security System. Additionally, the author offers a number of ideas for alleviating the severity, if not the avoidance altogether, of financial crises in the future. This is a book for those -- students (both graduate and undergraduate) and their teachers, investors, and the informed public -- who want an understanding of how economies and financial markets function, without an advanced degree in mathematics.

Download or read book Financial Infrastructure Group Interests and Capital Accumulation written by Mr.Biaggio Bossone and published by International Monetary Fund. This book was released on 2003-02-28 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study presents a theory of financial infrastructure - or the set of rules, institutions, and systems within which agents carry out financial transactions. It investigates the effects of financial infrastructure development on financial architecture and real capital accumulation, taking into account financial-sector special interests. It shows that a more developed infrastructure promotes financial market growth, reduces the scope of traditional banking, and helps investors make more efficient investment decisions. The theory presented explains why traditional banking predominates in the early stages of economic development and becomes relatively less important as the economy develops, and why banks may retard financial sector development. The study provides evidence in support of its predictions.

Download or read book Capital in the American Economy written by Simon Smith Kuznets and published by Princeton University Press. This book was released on 2015-12-08 with total page 694 pages. Available in PDF, EPUB and Kindle. Book excerpt: An examination of long-term trends in capital formation and financing in the U.S., this study is organized primarily around the principal capital-using sectors of the economy: agriculture, mining and manufacturing, public utilities, non-farm residential real estate, and government. The analysis summarizes major trends in real capital formation and financing, and the factors that determined the trends. Originally published in 1961. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

Download or read book Capital Fundamentalism Economic Development and Economic Growth written by Robert Graham King and published by World Bank Publications. This book was released on 1994 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Should our research and policy advice be guided by a modern version of capital fundamentalism, in which capital and investment are viewed as the primary determinants of economic development and long- run growth? No. Capital accumulation seems to be part of the process of economic development, not its igniting source.

Download or read book Finance Financial Sector Policies and Long run Growth written by Asli Demirguc-Kunt and published by World Bank Publications. This book was released on 2008 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: The first part of this paper reviews the literature on the relation between finance and growth. The second part of the paper reviews the literature on the historical and policy determinants of financial development. Governments play a central role in shaping the operation of financial systems and the degree to which large segments of the financial system have access to financial services. The paper discusses the relationship between financial sector policies and economic development.

Download or read book Money and Capital in Economic Development written by Ronald I. McKinnon and published by Brookings Institution Press. This book was released on 2010-12-01 with total page 197 pages. Available in PDF, EPUB and Kindle. Book excerpt: This books presents a theory of economic development very different from the "stages of growth" hypothesis or strategies emphasizing foreign aid, trade, or regional association. Leaving these aside, the author breaks new ground by focusing on the use of domestic capital markets to stimulate economic performance. He suggests a "bootstrap" approach in which successful development would depend largely on policy choices made by national authorities in the developing countries themselves. Central to his theory is the freeing of domestic financial markets to allow interest rates to reflect the true scarcity of capital in a developing economy. His analysis leads to a critique of prevailing monetary theory and to a new view of the relation between money and physical capital—a view with policy implications for governments striving to overcome the vicious circle of inflation and stagnation. Examining the performance of South Korea, Taiwan, Brazil, and other countries, the author suggests that their success or failure has depended primarily on steps taken in the monetary sector. He concludes that monetary reform should take precedence over other development measures, such as tariff and tax reform or the encouragement of foreign capital investment. In addition to challenging much of the conventional wisdom of development, the author's revision of accepted monetary theory may be relevant for mature economies that face monetary problems.

Download or read book Capital Accumulation and Economic Development written by Shanti S. Tangri and published by . This book was released on 1967 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Accumulation of Capital written by J. Robinson and published by Springer. This book was released on 2016-11-09 with total page 463 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this classic work Joan Robinson goes back to the beginning and works out the basic theory that is needed for a coherent treatment of the problems that present themselves in a developing economy. This new edition features a new introduction, which discusses the great significance of Robinson's work.

Download or read book Financial Development and Economic Growth written by Ross Levine and published by . This book was released on 2016 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: October 1996A growing body of theoretical and empirical work would push even skeptics toward the belief that the development of financial markets and institutions is critical to economic growth, rather than a sideshow or a passive response to growth.Levine argues that the preponderance of theoretical reasoning and empirical evidence suggests a positive, first-order relationship between financial development and economic growth. There is even evidence that the level of financial development is a good predictor of future rates of economic growth, capital accumulation, and technological change.Moreover, cross-country, case-study, industry-level, and firm-level analyses document extensive periods when financial development (or the lack thereof) crucially affects the speed and pattern of economic development.Levine explains what the financial system does and how it affects, and is affected by, economic growth. Theory suggests that financial instruments, markets, and institutions arise to mitigate the effects of information and transaction costs. A growing literature shows that differences in how well financial systems reduce information and transaction costs influence savings rates, investment decisions, technological innovation, and long-run growth rates.A less developed theoretical literature shows how changes in economic activity can influence financial systems.Without minimizing the role of institutions, Levine advocates a functional approach to understanding the role of financial systems in economic growth. This approach focuses on the ties between growth and the quality of the functions provided by the financial system. Levine discourages a narrow focus on one financial instrument, such as money, or a particular institution, such as banks. Instead, he addresses the more comprehensive, and difficult question: What is the relationship between financial structure and the functioning of the financial system?More research is needed on financial development. Why does financial structure change as countries grow, for example? Why do countries at similar stages of economic development have different looking financial systems? Are there long-run economic growth advantages to adopting legal and policy changes that create one type of financial structure rather than another?This paper is a product of the Finance and Private Sector Development Division, Policy Research Department.

Download or read book Financial Development and Economic Growth written by Mr.Pablo Emilio Guidotti and published by International Monetary Fund. This book was released on 1992-12-01 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the empirical relationship between long–run growth and the degree of financial development, proxied by the ratio of bank credit to the private sector as a fraction of GDP. We find that this proxy enters significantly and with a positive sign in growth regressions on a large cross–country sample, but with a negative sign using panel data for Latin America. Our findings suggest that the main channel of transmission from financial development to growth is the efficiency of investment, rather than its volume. We also present a model where the negative correlation between financial intermediation and growth results from financial liberalization in a poor regulatory environment.

Download or read book Financial Development and Economic Growth Views and Agenda written by Ross Levine and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: October 1996 A growing body of theoretical and empirical work would push even skeptics toward the belief that the development of financial markets and institutions is critical to economic growth, rather than a sideshow or a passive response to growth. Levine argues that the preponderance of theoretical reasoning and empirical evidence suggests a positive, first-order relationship between financial development and economic growth. There is even evidence that the level of financial development is a good predictor of future rates of economic growth, capital accumulation, and technological change. Moreover, cross-country, case-study, industry-level, and firm-level analyses document extensive periods when financial development (or the lack thereof) crucially affects the speed and pattern of economic development. Levine explains what the financial system does and how it affects, and is affected by, economic growth. Theory suggests that financial instruments, markets, and institutions arise to mitigate the effects of information and transaction costs. A growing literature shows that differences in how well financial systems reduce information and transaction costs influence savings rates, investment decisions, technological innovation, and long-run growth rates. A less developed theoretical literature shows how changes in economic activity can influence financial systems. Without minimizing the role of institutions, Levine advocates a functional approach to understanding the role of financial systems in economic growth. This approach focuses on the ties between growth and the quality of the functions provided by the financial system. Levine discourages a narrow focus on one financial instrument, such as money, or a particular institution, such as banks. Instead, he addresses the more comprehensive, and difficult, question: What is the relationship between financial structure and the functioning of the financial system? More research is needed on financial development. Why does financial structure change as countries grow, for example? Why do countries at similar stages of economic development have different looking financial systems? Are there long-run economic growth advantages to adopting legal and policy changes that create one type of financial structure rather than another? This paper is a product of the Finance and Private Sector Development Division, Policy Research Department.

Download or read book Multisector Growth Models written by Terry L. Roe and published by Springer Science & Business Media. This book was released on 2009-10-03 with total page 333 pages. Available in PDF, EPUB and Kindle. Book excerpt: The primary objective of this book is to advance the state of the art in specifying and ?tting to data structural multi-sector dynamic macroeconomic models, and empirically implementing them. The fundamental construct upon which we build is the Ramsey model. A most attractive feature of this model is the insights it provides into the dynamics of an economy in tr- sition to long-run equilibrium. With some exceptions, Ramsey models are highly aggregated – typically single sector models. However, interest often lies in understanding the forces of e- nomic growth across multiple sectors of an economy and on how policy impacts likely play out over time. Such analyses call for moredisaggregatedmodelsthatcanbe?ttocountryorregional data.Thisbookshowshowto:(i)extendthebasicmodeltom- tiple sectors, (ii) how to adapt the basic model to account for policy instruments, and (iii) ?t the model to data, and obtain equilibrium values both forward and backward in time from the data points to which the model is initially ?t.