Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development
A likely image of the current state of the literature on financial sector development is that of a Swiss cheese with many holes inside important areas of knowledge. The aim of this synthesis paper is to map the current knowledge and ignorance (i.e....
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/10/18403525/cheese-synthesizing-giant-literature-causes-consequences-financial-sector-development http://hdl.handle.net/10986/16870 |
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okr-10986-16870 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO FINANCE ACCESS TO INFORMATION ACCESSIBILITY ACCOUNTING ACCOUNTING STANDARDS ASYMMETRIC INFORMATION BANK ACCOUNT BANK ACCOUNTS BANK ASSETS BANK BRANCH BANK BRANCHES BANK LENDING BANK REGULATION BANK REGULATIONS BANK SPREADS BANK SUPERVISION BANKING CRISES BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTOR REFORM BANKING SECTOR REFORMS BANKING SECTORS BANKING STRUCTURE BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BARRIERS TO COMPETITION BARRIERS TO ENTRY BOND BOND MARKET BOND MARKET CAPITALIZATION BRITISH LEGAL ORIGIN CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKS CONTRACT ENFORCEMENT CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CORPORATE GOVERNANCE CORRUPTION COUNTRY RISK CREDIT ALLOCATION CREDIT BUREAUS CREDIT GROWTH CREDIT INFORMATION CREDIT REGISTRIES CREDIT RISK CREDITOR CREDITOR RIGHTS CREDITORS CRISIS COUNTRIES CURRENCY CURRENCY CRISES CURRENCY CRISIS DEBT DEPOSIT DEPOSIT INSURANCE DEPOSIT MONEY BANK DEPOSITORS DEPOSITS DERIVATIVES DEVELOPING COUNTRIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DOMESTIC BANKING DOMESTIC BANKING MARKETS DOMESTIC BANKS DOMESTIC CREDIT DOMESTIC FINANCIAL MARKET DOMESTIC MARKET ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMERGING MARKETS EMPLOYMENT GROWTH ENTRY BARRIERS EQUITY MARKET EQUITY MARKETS FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL DEREGULATION FINANCIAL DEVELOPMENT FINANCIAL FRAGILITY FINANCIAL HISTORY FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL OPENNESS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR REFORM FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN INVESTMENT GOVERNMENT BANKS GOVERNMENT OWNERSHIP GROSS DOMESTIC PRODUCT HOUSEHOLD INCOME HOUSEHOLDS INCOME GROUP INCUMBENT BANKS INEQUALITY INFLATION INFLATION RATES INFORMATION SERVICES INFORMATION SHARING INSTITUTIONAL INVESTOR INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE PREMIUM INTEREST RATE INTEREST RATE CONTROLS INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL SETTLEMENTS INVENTORY INVESTMENT CLIMATE LABOR MARKET LABOR MARKETS LACK OF ACCESS LACK OF COMPETITION LEGAL CONSTRAINTS LEGAL ENVIRONMENT LEGAL FRAMEWORK LENDING AGREEMENT LEVEL OF RISK LIFE INSURANCE LIQUIDITY LIQUIDITY CONSTRAINTS LOAN MACRO-STABILITY MARKET ACCESS MARKET DEPTH MARKET DISCIPLINE MARKET DISTORTIONS MARKET LIQUIDITY MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MICROFINANCE MONETARY FUND MORAL HAZARD NONPERFORMING LOANS NPL OPEN ECONOMIES OUTPUT LOSS OUTPUT LOSSES OVERHEAD COSTS PENSION PENSION ASSETS PENSION FUNDS PENSION REFORMS PENSION SYSTEMS PENSIONS PRIVATE CREDIT PRIVATE CREDIT BUREAUS PRIVATE ENTERPRISES PROFITABILITY PUBLIC REGISTRIES REAL ESTATE REGULATORY FRAMEWORK REGULATORY GOVERNANCE RESERVE RESERVE REQUIREMENTS RETURN RETURN ON ASSETS RETURNS RISK DIVERSIFICATION RISK SHARING RULE OF LAW RURAL BANKS SAVINGS SCHEMES SECURITIES SHARE OF ASSETS SHAREHOLDERS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS SUPERVISORY POWER TAX TAX INCENTIVE TECHNICAL ASSISTANCE TRANSITION COUNTRIES TRANSITION ECONOMIES UNEMPLOYMENT |
| spellingShingle |
ACCESS TO FINANCE ACCESS TO INFORMATION ACCESSIBILITY ACCOUNTING ACCOUNTING STANDARDS ASYMMETRIC INFORMATION BANK ACCOUNT BANK ACCOUNTS BANK ASSETS BANK BRANCH BANK BRANCHES BANK LENDING BANK REGULATION BANK REGULATIONS BANK SPREADS BANK SUPERVISION BANKING CRISES BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTOR REFORM BANKING SECTOR REFORMS BANKING SECTORS BANKING STRUCTURE BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BARRIERS TO COMPETITION BARRIERS TO ENTRY BOND BOND MARKET BOND MARKET CAPITALIZATION BRITISH LEGAL ORIGIN CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKS CONTRACT ENFORCEMENT CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CORPORATE GOVERNANCE CORRUPTION COUNTRY RISK CREDIT ALLOCATION CREDIT BUREAUS CREDIT GROWTH CREDIT INFORMATION CREDIT REGISTRIES CREDIT RISK CREDITOR CREDITOR RIGHTS CREDITORS CRISIS COUNTRIES CURRENCY CURRENCY CRISES CURRENCY CRISIS DEBT DEPOSIT DEPOSIT INSURANCE DEPOSIT MONEY BANK DEPOSITORS DEPOSITS DERIVATIVES DEVELOPING COUNTRIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DOMESTIC BANKING DOMESTIC BANKING MARKETS DOMESTIC BANKS DOMESTIC CREDIT DOMESTIC FINANCIAL MARKET DOMESTIC MARKET ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMERGING MARKETS EMPLOYMENT GROWTH ENTRY BARRIERS EQUITY MARKET EQUITY MARKETS FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL DEREGULATION FINANCIAL DEVELOPMENT FINANCIAL FRAGILITY FINANCIAL HISTORY FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL OPENNESS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR REFORM FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN INVESTMENT GOVERNMENT BANKS GOVERNMENT OWNERSHIP GROSS DOMESTIC PRODUCT HOUSEHOLD INCOME HOUSEHOLDS INCOME GROUP INCUMBENT BANKS INEQUALITY INFLATION INFLATION RATES INFORMATION SERVICES INFORMATION SHARING INSTITUTIONAL INVESTOR INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE PREMIUM INTEREST RATE INTEREST RATE CONTROLS INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL SETTLEMENTS INVENTORY INVESTMENT CLIMATE LABOR MARKET LABOR MARKETS LACK OF ACCESS LACK OF COMPETITION LEGAL CONSTRAINTS LEGAL ENVIRONMENT LEGAL FRAMEWORK LENDING AGREEMENT LEVEL OF RISK LIFE INSURANCE LIQUIDITY LIQUIDITY CONSTRAINTS LOAN MACRO-STABILITY MARKET ACCESS MARKET DEPTH MARKET DISCIPLINE MARKET DISTORTIONS MARKET LIQUIDITY MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MICROFINANCE MONETARY FUND MORAL HAZARD NONPERFORMING LOANS NPL OPEN ECONOMIES OUTPUT LOSS OUTPUT LOSSES OVERHEAD COSTS PENSION PENSION ASSETS PENSION FUNDS PENSION REFORMS PENSION SYSTEMS PENSIONS PRIVATE CREDIT PRIVATE CREDIT BUREAUS PRIVATE ENTERPRISES PROFITABILITY PUBLIC REGISTRIES REAL ESTATE REGULATORY FRAMEWORK REGULATORY GOVERNANCE RESERVE RESERVE REQUIREMENTS RETURN RETURN ON ASSETS RETURNS RISK DIVERSIFICATION RISK SHARING RULE OF LAW RURAL BANKS SAVINGS SCHEMES SECURITIES SHARE OF ASSETS SHAREHOLDERS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS SUPERVISORY POWER TAX TAX INCENTIVE TECHNICAL ASSISTANCE TRANSITION COUNTRIES TRANSITION ECONOMIES UNEMPLOYMENT Selşah Paşalı, Selahattin Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development |
| relation |
Policy Research Working Paper;No. 6655 |
| description |
A likely image of the current state of
the literature on financial sector development is that of a
Swiss cheese with many holes inside important areas of
knowledge. The aim of this synthesis paper is to map the
current knowledge and ignorance (i.e., holes) in the
literature by providing a narrative for the empirical
findings of a comprehensive literature review concerning the
quantitative effects of financial development on economic
growth and employment, and various determinants of financial
sector development. The literature was restricted mostly to
high-quality academic research that focuses on developing
countries over the period 1960-2012. Because of data
constraints, this review also includes cross-country
analyses, in which developed and developing countries are
considered together. The main findings include (i) a
positive relationship between financial development and
economic growth and employment, subject to a number of
qualifications; (ii) a complicated relationship of
regulations and supervision to financial sector development;
and (iii) a positive relationship between an enabling
institutional environment and financial sector development.
This review also identifies some missing avenues in the
literature and provides a number of suggestions for future work. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Selşah Paşalı, Selahattin |
| author_facet |
Selşah Paşalı, Selahattin |
| author_sort |
Selşah Paşalı, Selahattin |
| title |
Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development |
| title_short |
Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development |
| title_full |
Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development |
| title_fullStr |
Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development |
| title_full_unstemmed |
Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development |
| title_sort |
where is the cheese? synthesizing a giant literature on causes and consequences of financial sector development |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/10/18403525/cheese-synthesizing-giant-literature-causes-consequences-financial-sector-development http://hdl.handle.net/10986/16870 |
| _version_ |
1764434760108605440 |
| spelling |
okr-10986-168702021-04-23T14:03:32Z Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development Selşah Paşalı, Selahattin ACCESS TO FINANCE ACCESS TO INFORMATION ACCESSIBILITY ACCOUNTING ACCOUNTING STANDARDS ASYMMETRIC INFORMATION BANK ACCOUNT BANK ACCOUNTS BANK ASSETS BANK BRANCH BANK BRANCHES BANK LENDING BANK REGULATION BANK REGULATIONS BANK SPREADS BANK SUPERVISION BANKING CRISES BANKING CRISIS BANKING REGULATION BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SECTOR REFORM BANKING SECTOR REFORMS BANKING SECTORS BANKING STRUCTURE BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BARRIERS TO COMPETITION BARRIERS TO ENTRY BOND BOND MARKET BOND MARKET CAPITALIZATION BRITISH LEGAL ORIGIN CAPITAL ACCOUNT CAPITAL ACCOUNT LIBERALIZATION CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNTS CAPITAL ACCUMULATION CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK COMMERCIAL BANK COMMERCIAL BANKS CONTRACT ENFORCEMENT CONTRACTUAL SAVINGS CONTRACTUAL SAVINGS INSTITUTIONS CORPORATE GOVERNANCE CORRUPTION COUNTRY RISK CREDIT ALLOCATION CREDIT BUREAUS CREDIT GROWTH CREDIT INFORMATION CREDIT REGISTRIES CREDIT RISK CREDITOR CREDITOR RIGHTS CREDITORS CRISIS COUNTRIES CURRENCY CURRENCY CRISES CURRENCY CRISIS DEBT DEPOSIT DEPOSIT INSURANCE DEPOSIT MONEY BANK DEPOSITORS DEPOSITS DERIVATIVES DEVELOPING COUNTRIES DISCLOSURE OF INFORMATION DISCLOSURE REQUIREMENTS DOMESTIC BANKING DOMESTIC BANKING MARKETS DOMESTIC BANKS DOMESTIC CREDIT DOMESTIC FINANCIAL MARKET DOMESTIC MARKET ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GROWTH EMERGING MARKETS EMPLOYMENT GROWTH ENTRY BARRIERS EQUITY MARKET EQUITY MARKETS FINANCIAL ASSETS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEPTH FINANCIAL DEREGULATION FINANCIAL DEVELOPMENT FINANCIAL FRAGILITY FINANCIAL HISTORY FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL OPENNESS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR DEVELOPMENT FINANCIAL SECTOR REFORM FINANCIAL STABILITY FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN INVESTMENT GOVERNMENT BANKS GOVERNMENT OWNERSHIP GROSS DOMESTIC PRODUCT HOUSEHOLD INCOME HOUSEHOLDS INCOME GROUP INCUMBENT BANKS INEQUALITY INFLATION INFLATION RATES INFORMATION SERVICES INFORMATION SHARING INSTITUTIONAL INVESTOR INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE PREMIUM INTEREST RATE INTEREST RATE CONTROLS INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL DEVELOPMENT INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL SETTLEMENTS INVENTORY INVESTMENT CLIMATE LABOR MARKET LABOR MARKETS LACK OF ACCESS LACK OF COMPETITION LEGAL CONSTRAINTS LEGAL ENVIRONMENT LEGAL FRAMEWORK LENDING AGREEMENT LEVEL OF RISK LIFE INSURANCE LIQUIDITY LIQUIDITY CONSTRAINTS LOAN MACRO-STABILITY MARKET ACCESS MARKET DEPTH MARKET DISCIPLINE MARKET DISTORTIONS MARKET LIQUIDITY MICRO-FINANCE MICRO-FINANCE INSTITUTIONS MICROFINANCE MONETARY FUND MORAL HAZARD NONPERFORMING LOANS NPL OPEN ECONOMIES OUTPUT LOSS OUTPUT LOSSES OVERHEAD COSTS PENSION PENSION ASSETS PENSION FUNDS PENSION REFORMS PENSION SYSTEMS PENSIONS PRIVATE CREDIT PRIVATE CREDIT BUREAUS PRIVATE ENTERPRISES PROFITABILITY PUBLIC REGISTRIES REAL ESTATE REGULATORY FRAMEWORK REGULATORY GOVERNANCE RESERVE RESERVE REQUIREMENTS RETURN RETURN ON ASSETS RETURNS RISK DIVERSIFICATION RISK SHARING RULE OF LAW RURAL BANKS SAVINGS SCHEMES SECURITIES SHARE OF ASSETS SHAREHOLDERS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS SUPERVISORY POWER TAX TAX INCENTIVE TECHNICAL ASSISTANCE TRANSITION COUNTRIES TRANSITION ECONOMIES UNEMPLOYMENT A likely image of the current state of the literature on financial sector development is that of a Swiss cheese with many holes inside important areas of knowledge. The aim of this synthesis paper is to map the current knowledge and ignorance (i.e., holes) in the literature by providing a narrative for the empirical findings of a comprehensive literature review concerning the quantitative effects of financial development on economic growth and employment, and various determinants of financial sector development. The literature was restricted mostly to high-quality academic research that focuses on developing countries over the period 1960-2012. Because of data constraints, this review also includes cross-country analyses, in which developed and developing countries are considered together. The main findings include (i) a positive relationship between financial development and economic growth and employment, subject to a number of qualifications; (ii) a complicated relationship of regulations and supervision to financial sector development; and (iii) a positive relationship between an enabling institutional environment and financial sector development. This review also identifies some missing avenues in the literature and provides a number of suggestions for future work. 2014-02-04T17:59:12Z 2014-02-04T17:59:12Z 2013-10 http://documents.worldbank.org/curated/en/2013/10/18403525/cheese-synthesizing-giant-literature-causes-consequences-financial-sector-development http://hdl.handle.net/10986/16870 English en_US Policy Research Working Paper;No. 6655 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |