Quantifying the Impact of Financial Development on Economic
By Jeremy Greenwood, J. M. Sanchez, Cheng Wang. 2010
277 citations recorded by the source corpus.
How important is …nancial development for economic development? A costly state veri…cation model of …nancial intermediation is presented to address this question. The model is calibrated to match facts about the U.S. economy, such as intermediation spreads and the …rm-size distribution for the years 1974 and 2004. It is then used to study the international data, using cross-country interest-rate spreads and per-capita GDP. The analysis suggests a country like Uganda could increase its output by 140 to 180% if it could adopt the world’s best practice in the …nancial sector. Still, this amounts to only 34 to 40% of the gap between Uganda’s potential and actual output.
Subfields: Economics and Econometrics, Finance
View Paper: https://www.semanticscholar.org/paper/223dc2a08307cb32111169dad772fa804277ba27
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Francisco J. Buera
- Yongseok Shin
- Joseph P. Kaboski
- Era Dabla‐Norris
- Robert M. Townsend
- Yan Ji
- D. F. Unsal
- Benjamin Moll
In Finance
Citations in the corpus
- Entrepreneurship and Financial Frictions: A Macrodevelopment Perspective (2015, background): “Likewise, financial intermediation is highly correlated with measured TFP in the cross-section of countries (Buera et al., 2011; Greenwood et al., 2013; King and Levine, 1993).”
- Identifying Constraints to Financial Inclusion and Their Impact on GDP and Inequality: A Structural Framework for Policy (2015, background): “A related literature has found sizeable impacts of improved financial intermediation on aggregate productivity and income (Gine and Townsend, 2004; Jeong and Townsend, 2007, 2008; Amaral and Quintin, 2010; Buera et al., 2011; Greenwood et al., 2013).”
- Finance and Misallocation: Evidence from Plant-Level Data (2014, unknown): “as well as (iii) producer and worker optimization, (iv) the no-arbitrage condition (15), and (v) the laws of motion for the measures in (17) and (18).”