Finance, Financial Sector Policies, and Long-Run Growth

In this paper, authors first review the literature on the relation between finance and growth. Theory provides ambiguous predictions concerning the question of whether financial development exerts a positive, causative impact on long-run economic g...

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Main Authors:	Demirgüç-Kunt, Asli, Levine, Ross
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	ACCESS TO FINANCIAL SERVICES ACCESS TO INFORMATION ACCOUNTING ACCOUNTING STANDARDS ACTIVE MARKETS AGENCY PROBLEM ALLOCATION OF CAPITAL ALLOCATION OF CREDIT AMOUNT OF CAPITAL BANK = DEPOSIT BANK BRANCH BANK CREDIT BANK DOMESTIC CREDIT BANK INTERMEDIATION BANK LENDING BANK PROFITABILITY BANKING CRISES BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SYSTEM BANKING SYSTEMS BLACK MARKET BOND BOND MARKETS BONDS CAPITAL ACCUMULATION CAPITAL ALLOCATION CAPITAL FLOWS CAPITAL GROWTH CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL STOCK CENTRAL BANK CENTRAL BANKS CHECKS CIVIL LAW COMMON LAW CONSUMPTION EXPENDITURES CONTRACT ENFORCEMENT CORPORATE GOVERNANCE CORPORATE INSIDERS CREDIT ALLOCATION CREDIT INFORMATION CREDIT MARKET CREDIT RATIONING CREDIT SCORING CREDITOR CREDITORS CREDITWORTHINESS CURRENCY DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC EQUITIES DUMMY VARIABLES ECONOMIC AGENTS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIES OF SCALE ENFORCEMENT MECHANISMS ENFORCEMENT OF CONTRACTS ENTREPRENEURS EQUITY MARKETS EXCHANGE RATE EXPROPRIATIONS EXTERNAL CAPITAL EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL INVESTORS FAMILIES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REVOLUTION FINANCIAL SECTOR POLICIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLES FINANCING REQUIREMENTS FISCAL DISCIPLINE FISCAL POLICIES FISCAL POLICY FIXED ASSETS FIXED COST FLOW OF INFORMATION FOREIGN EXCHANGES GOVERNMENT INTERVENTION GOVERNMENT POLICIES GOVERNMENT REGULATION GOVERNMENT SECURITIES GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH OPPORTUNITIES HOLDING HOLDINGS HUMAN CAPITAL INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRIES INFORMATION DISCLOSURE INFORMATION SYSTEMS INFORMATIONAL ASYMMETRIES INSURANCE INTEREST RATE INTEREST RATE SPREADS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INVESTING INVESTMENT BANKING INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT OPPORTUNITIES LACK OF CAPITAL LEGAL SYSTEM LEGAL SYSTEM ADAPTABILITY LEGAL SYSTEMS LEGAL TRADITIONS LENDERS LENDING DECISIONS LIQUID ASSETS LIQUID MARKETS LIQUIDITY RISK LONG-TERM CAPITAL LONG-TERM DEBT LONG-TERM INVESTMENTS MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET FAILURES MARKET INTEGRATION MARKET LIQUIDITY MARKET PARTICIPANTS MARKET SIZE MARKET TRANSACTION MICRO DATA MINORITY SHAREHOLDERS MONETARY FUND MONETARY POLICY MUTUAL FUNDS NATIONAL SAVINGS NATIONAL STOCK EXCHANGE NATIONAL STOCK EXCHANGES OUTSIDE INVESTORS OWNERSHIP STRUCTURE POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PRICE MOVEMENTS PRIVATE CREDIT PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE PROPERTY PRIVATE REGISTRIES PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PURCHASING POWER RATES OF RETURN REAL INTEREST REAL INTEREST RATES RETURNS RISK DIVERSIFICATION RISK MANAGEMENT RISK MANAGEMENT SERVICES RISK SHARING SAVINGS RATE SAVINGS RATES SECURITIES SECURITIES MARKETS SETTLEMENT SHAREHOLDER SHAREHOLDERS SHORT-TERM BORROWING SMALL BUSINESS SMALL BUSINESS LENDING STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS STOCK RETURN STOCKS SUPERVISORY AGENCIES TAX TAX SYSTEMS TRADING TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSITION COUNTRIES TURNOVER
Online Access:	http://documents.worldbank.org/curated/en/644501468149692967/Finance-financial-sector-policies-and-long-run-growth http://hdl.handle.net/10986/28021

id	okr-10986-28021
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCESS TO FINANCIAL SERVICES ACCESS TO INFORMATION ACCOUNTING ACCOUNTING STANDARDS ACTIVE MARKETS AGENCY PROBLEM ALLOCATION OF CAPITAL ALLOCATION OF CREDIT AMOUNT OF CAPITAL BANK = DEPOSIT BANK BRANCH BANK CREDIT BANK DOMESTIC CREDIT BANK INTERMEDIATION BANK LENDING BANK PROFITABILITY BANKING CRISES BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SYSTEM BANKING SYSTEMS BLACK MARKET BOND BOND MARKETS BONDS CAPITAL ACCUMULATION CAPITAL ALLOCATION CAPITAL FLOWS CAPITAL GROWTH CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL STOCK CENTRAL BANK CENTRAL BANKS CHECKS CIVIL LAW COMMON LAW CONSUMPTION EXPENDITURES CONTRACT ENFORCEMENT CORPORATE GOVERNANCE CORPORATE INSIDERS CREDIT ALLOCATION CREDIT INFORMATION CREDIT MARKET CREDIT RATIONING CREDIT SCORING CREDITOR CREDITORS CREDITWORTHINESS CURRENCY DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC EQUITIES DUMMY VARIABLES ECONOMIC AGENTS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIES OF SCALE ENFORCEMENT MECHANISMS ENFORCEMENT OF CONTRACTS ENTREPRENEURS EQUITY MARKETS EXCHANGE RATE EXPROPRIATIONS EXTERNAL CAPITAL EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL INVESTORS FAMILIES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REVOLUTION FINANCIAL SECTOR POLICIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLES FINANCING REQUIREMENTS FISCAL DISCIPLINE FISCAL POLICIES FISCAL POLICY FIXED ASSETS FIXED COST FLOW OF INFORMATION FOREIGN EXCHANGES GOVERNMENT INTERVENTION GOVERNMENT POLICIES GOVERNMENT REGULATION GOVERNMENT SECURITIES GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH OPPORTUNITIES HOLDING HOLDINGS HUMAN CAPITAL INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRIES INFORMATION DISCLOSURE INFORMATION SYSTEMS INFORMATIONAL ASYMMETRIES INSURANCE INTEREST RATE INTEREST RATE SPREADS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INVESTING INVESTMENT BANKING INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT OPPORTUNITIES LACK OF CAPITAL LEGAL SYSTEM LEGAL SYSTEM ADAPTABILITY LEGAL SYSTEMS LEGAL TRADITIONS LENDERS LENDING DECISIONS LIQUID ASSETS LIQUID MARKETS LIQUIDITY RISK LONG-TERM CAPITAL LONG-TERM DEBT LONG-TERM INVESTMENTS MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET FAILURES MARKET INTEGRATION MARKET LIQUIDITY MARKET PARTICIPANTS MARKET SIZE MARKET TRANSACTION MICRO DATA MINORITY SHAREHOLDERS MONETARY FUND MONETARY POLICY MUTUAL FUNDS NATIONAL SAVINGS NATIONAL STOCK EXCHANGE NATIONAL STOCK EXCHANGES OUTSIDE INVESTORS OWNERSHIP STRUCTURE POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PRICE MOVEMENTS PRIVATE CREDIT PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE PROPERTY PRIVATE REGISTRIES PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PURCHASING POWER RATES OF RETURN REAL INTEREST REAL INTEREST RATES RETURNS RISK DIVERSIFICATION RISK MANAGEMENT RISK MANAGEMENT SERVICES RISK SHARING SAVINGS RATE SAVINGS RATES SECURITIES SECURITIES MARKETS SETTLEMENT SHAREHOLDER SHAREHOLDERS SHORT-TERM BORROWING SMALL BUSINESS SMALL BUSINESS LENDING STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS STOCK RETURN STOCKS SUPERVISORY AGENCIES TAX TAX SYSTEMS TRADING TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSITION COUNTRIES TURNOVER
spellingShingle	ACCESS TO FINANCIAL SERVICES ACCESS TO INFORMATION ACCOUNTING ACCOUNTING STANDARDS ACTIVE MARKETS AGENCY PROBLEM ALLOCATION OF CAPITAL ALLOCATION OF CREDIT AMOUNT OF CAPITAL BANK = DEPOSIT BANK BRANCH BANK CREDIT BANK DOMESTIC CREDIT BANK INTERMEDIATION BANK LENDING BANK PROFITABILITY BANKING CRISES BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SYSTEM BANKING SYSTEMS BLACK MARKET BOND BOND MARKETS BONDS CAPITAL ACCUMULATION CAPITAL ALLOCATION CAPITAL FLOWS CAPITAL GROWTH CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL STOCK CENTRAL BANK CENTRAL BANKS CHECKS CIVIL LAW COMMON LAW CONSUMPTION EXPENDITURES CONTRACT ENFORCEMENT CORPORATE GOVERNANCE CORPORATE INSIDERS CREDIT ALLOCATION CREDIT INFORMATION CREDIT MARKET CREDIT RATIONING CREDIT SCORING CREDITOR CREDITORS CREDITWORTHINESS CURRENCY DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC EQUITIES DUMMY VARIABLES ECONOMIC AGENTS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIES OF SCALE ENFORCEMENT MECHANISMS ENFORCEMENT OF CONTRACTS ENTREPRENEURS EQUITY MARKETS EXCHANGE RATE EXPROPRIATIONS EXTERNAL CAPITAL EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL INVESTORS FAMILIES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REVOLUTION FINANCIAL SECTOR POLICIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLES FINANCING REQUIREMENTS FISCAL DISCIPLINE FISCAL POLICIES FISCAL POLICY FIXED ASSETS FIXED COST FLOW OF INFORMATION FOREIGN EXCHANGES GOVERNMENT INTERVENTION GOVERNMENT POLICIES GOVERNMENT REGULATION GOVERNMENT SECURITIES GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH OPPORTUNITIES HOLDING HOLDINGS HUMAN CAPITAL INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRIES INFORMATION DISCLOSURE INFORMATION SYSTEMS INFORMATIONAL ASYMMETRIES INSURANCE INTEREST RATE INTEREST RATE SPREADS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INVESTING INVESTMENT BANKING INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT OPPORTUNITIES LACK OF CAPITAL LEGAL SYSTEM LEGAL SYSTEM ADAPTABILITY LEGAL SYSTEMS LEGAL TRADITIONS LENDERS LENDING DECISIONS LIQUID ASSETS LIQUID MARKETS LIQUIDITY RISK LONG-TERM CAPITAL LONG-TERM DEBT LONG-TERM INVESTMENTS MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET FAILURES MARKET INTEGRATION MARKET LIQUIDITY MARKET PARTICIPANTS MARKET SIZE MARKET TRANSACTION MICRO DATA MINORITY SHAREHOLDERS MONETARY FUND MONETARY POLICY MUTUAL FUNDS NATIONAL SAVINGS NATIONAL STOCK EXCHANGE NATIONAL STOCK EXCHANGES OUTSIDE INVESTORS OWNERSHIP STRUCTURE POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PRICE MOVEMENTS PRIVATE CREDIT PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE PROPERTY PRIVATE REGISTRIES PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PURCHASING POWER RATES OF RETURN REAL INTEREST REAL INTEREST RATES RETURNS RISK DIVERSIFICATION RISK MANAGEMENT RISK MANAGEMENT SERVICES RISK SHARING SAVINGS RATE SAVINGS RATES SECURITIES SECURITIES MARKETS SETTLEMENT SHAREHOLDER SHAREHOLDERS SHORT-TERM BORROWING SMALL BUSINESS SMALL BUSINESS LENDING STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS STOCK RETURN STOCKS SUPERVISORY AGENCIES TAX TAX SYSTEMS TRADING TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSITION COUNTRIES TURNOVER Demirgüç-Kunt, Asli Levine, Ross Finance, Financial Sector Policies, and Long-Run Growth
relation	Commission on Growth and Development Working Paper;No. 11
description	In this paper, authors first review the literature on the relation between finance and growth. Theory provides ambiguous predictions concerning the question of whether financial development exerts a positive, causative impact on long-run economic growth. The second part of this 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 authors discuss the relationship between financial sector policies and economic development. The remainder of the paper proceeds as follows. Sections one and two review theory and evidence on the relation between finance and growth. Section three turns to an examination of financial sector policies, and section four concludes.
format	Working Paper
author	Demirgüç-Kunt, Asli Levine, Ross
author_facet	Demirgüç-Kunt, Asli Levine, Ross
author_sort	Demirgüç-Kunt, Asli
title	Finance, Financial Sector Policies, and Long-Run Growth
title_short	Finance, Financial Sector Policies, and Long-Run Growth
title_full	Finance, Financial Sector Policies, and Long-Run Growth
title_fullStr	Finance, Financial Sector Policies, and Long-Run Growth
title_full_unstemmed	Finance, Financial Sector Policies, and Long-Run Growth
title_sort	finance, financial sector policies, and long-run growth
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/644501468149692967/Finance-financial-sector-policies-and-long-run-growth http://hdl.handle.net/10986/28021
_version_	1764465826271854592
spelling	okr-10986-280212021-04-23T14:04:46Z Finance, Financial Sector Policies, and Long-Run Growth Demirgüç-Kunt, Asli Levine, Ross ACCESS TO FINANCIAL SERVICES ACCESS TO INFORMATION ACCOUNTING ACCOUNTING STANDARDS ACTIVE MARKETS AGENCY PROBLEM ALLOCATION OF CAPITAL ALLOCATION OF CREDIT AMOUNT OF CAPITAL BANK = DEPOSIT BANK BRANCH BANK CREDIT BANK DOMESTIC CREDIT BANK INTERMEDIATION BANK LENDING BANK PROFITABILITY BANKING CRISES BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SYSTEM BANKING SYSTEMS BLACK MARKET BOND BOND MARKETS BONDS CAPITAL ACCUMULATION CAPITAL ALLOCATION CAPITAL FLOWS CAPITAL GROWTH CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL STOCK CENTRAL BANK CENTRAL BANKS CHECKS CIVIL LAW COMMON LAW CONSUMPTION EXPENDITURES CONTRACT ENFORCEMENT CORPORATE GOVERNANCE CORPORATE INSIDERS CREDIT ALLOCATION CREDIT INFORMATION CREDIT MARKET CREDIT RATIONING CREDIT SCORING CREDITOR CREDITORS CREDITWORTHINESS CURRENCY DEPOSIT MONEY BANKS DEPOSITORS DEPOSITS DEVELOPING COUNTRIES DIVERSIFIED PORTFOLIO DIVERSIFIED PORTFOLIOS DOMESTIC EQUITIES DUMMY VARIABLES ECONOMIC AGENTS ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC GROWTH ECONOMIC POLICIES ECONOMIES OF SCALE ENFORCEMENT MECHANISMS ENFORCEMENT OF CONTRACTS ENTREPRENEURS EQUITY MARKETS EXCHANGE RATE EXPROPRIATIONS EXTERNAL CAPITAL EXTERNAL FINANCE EXTERNAL FINANCING EXTERNAL INVESTORS FAMILIES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REVOLUTION FINANCIAL SECTOR POLICIES FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCING OBSTACLES FINANCING REQUIREMENTS FISCAL DISCIPLINE FISCAL POLICIES FISCAL POLICY FIXED ASSETS FIXED COST FLOW OF INFORMATION FOREIGN EXCHANGES GOVERNMENT INTERVENTION GOVERNMENT POLICIES GOVERNMENT REGULATION GOVERNMENT SECURITIES GOVERNMENT SPENDING GOVERNMENT SUBSIDIES GROWTH OPPORTUNITIES HOLDING HOLDINGS HUMAN CAPITAL INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRIES INFORMATION DISCLOSURE INFORMATION SYSTEMS INFORMATIONAL ASYMMETRIES INSURANCE INTEREST RATE INTEREST RATE SPREADS INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INVESTING INVESTMENT BANKING INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT OPPORTUNITIES LACK OF CAPITAL LEGAL SYSTEM LEGAL SYSTEM ADAPTABILITY LEGAL SYSTEMS LEGAL TRADITIONS LENDERS LENDING DECISIONS LIQUID ASSETS LIQUID MARKETS LIQUIDITY RISK LONG-TERM CAPITAL LONG-TERM DEBT LONG-TERM INVESTMENTS MACROECONOMIC ENVIRONMENT MACROECONOMIC INSTABILITY MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET FAILURES MARKET INTEGRATION MARKET LIQUIDITY MARKET PARTICIPANTS MARKET SIZE MARKET TRANSACTION MICRO DATA MINORITY SHAREHOLDERS MONETARY FUND MONETARY POLICY MUTUAL FUNDS NATIONAL SAVINGS NATIONAL STOCK EXCHANGE NATIONAL STOCK EXCHANGES OUTSIDE INVESTORS OWNERSHIP STRUCTURE POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PRICE MOVEMENTS PRIVATE CREDIT PRIVATE ENTERPRISES PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE PROPERTY PRIVATE REGISTRIES PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION PURCHASING POWER RATES OF RETURN REAL INTEREST REAL INTEREST RATES RETURNS RISK DIVERSIFICATION RISK MANAGEMENT RISK MANAGEMENT SERVICES RISK SHARING SAVINGS RATE SAVINGS RATES SECURITIES SECURITIES MARKETS SETTLEMENT SHAREHOLDER SHAREHOLDERS SHORT-TERM BORROWING SMALL BUSINESS SMALL BUSINESS LENDING STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKETS STOCK RETURN STOCKS SUPERVISORY AGENCIES TAX TAX SYSTEMS TRADING TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSITION COUNTRIES TURNOVER In this paper, authors first review the literature on the relation between finance and growth. Theory provides ambiguous predictions concerning the question of whether financial development exerts a positive, causative impact on long-run economic growth. The second part of this 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 authors discuss the relationship between financial sector policies and economic development. The remainder of the paper proceeds as follows. Sections one and two review theory and evidence on the relation between finance and growth. Section three turns to an examination of financial sector policies, and section four concludes. 2017-08-28T17:35:13Z 2017-08-28T17:35:13Z 2008 Working Paper http://documents.worldbank.org/curated/en/644501468149692967/Finance-financial-sector-policies-and-long-run-growth http://hdl.handle.net/10986/28021 English en_US Commission on Growth and Development Working Paper;No. 11 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research

Finance, Financial Sector Policies, and Long-Run Growth

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