INFLUENCE OF FINANCIAL SECTOR DEVELOPMENT ON ECONOMIC GROWTH
AbstractIn the view of every country’s endeavors for sustainable economic development, the question of key factors influencing economic growth or recession is becoming more prominent. For several decades now, finance is being considered as one of such factors by some scholars and rejected by others. This article is aimed at analyzing the finance-growth nexus by considering the existing theoretical background, empirical studies, and real life cases. Research has shown that the influence of financial sector on economic growth, and as a result of real sector’s activity, is becoming more obvious, especially in the light of the recent global financial-economic crisis. What remains unknown is the extent to which finance can encourage economies to develop.
Baily, M., & Elliot, D. (2013, July). The Role of Finance in the Economy: Implications for Structural Reform of the Financial Sector.
Beck, T., Demirgüç-Kunt, А., & Levine, R. (2000). A new database on financial development and structure. Open Access publications from Tilburg University. Tilburg University.
Binswanger, M. (1999). Co-evolution between the real and financial sectors: the optimistic “New growth theory view” versus the pessimistic “Keynesian view.” Olten: Fachhochsch. Nordwestschweiz.
Bjellerup, M., & Shahnazarian, H. (2012, November). The Interaction between the Financial System and the Real Economy. 13-23.
Caballero, R., & Farhi, E. (2013). A Model of the Safe Asset Mechanism (SAM): Safety Traps and Economic Policy. NBER Working Paper No. 18737.
Federal Reserve Statistical Release (2014). Z.1 Financial Accounts of the United States (Q4, 2013). Retrieved from http://www.federalreserve.gov/releases/z1/20140306/z1.pdf
Goldsmith, R. W. (1969). Financial Structure and Development. New Haven and London: Yale University Press.
Gurley, J., & Shaw, E. (1967). Financial Structure and Economic Development. Economic Development and Cultural Change, 15(3), 257-268.
Hicks, J. R. (1969). A Theory of Economic history. Oxford: Oxford University Press.
King, R. G., & Levine, R. (1993). Finance and Growth: Schumpeter Might Be Right. Quarterly Journal of Economics, 108(3), 717-737. doi: 10.2307/2118406
Levine, R. (1997, June). Financial Development and Economic Growth: Views and Agenda. Journal of Economic Literature, 35, 688–726
Levine, R. (2002). Bank-Based or Market-Based Financial Systems: Which is Better? NBER Working Paper No. 9138.
Levine, R. (2004). Finance and Growth: Theory and Evidence. NBER Working Paper No. 10766.
Lucas, R. E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22, 3-42.
Rajan, R., & Zingales, L. (1998, June). Financial dependence and growth. The American Economic review, 88(3), 559-586.
Sukharev, O. S. (2009). Ecological Efficiency and Functions of Agents Behavior: What Can Economic Theory Say? Bulletin of the University of Perm. Retrieved from http://cyberleninka.ru/article/n/ekologicheskaya-effektivnost-i-funktsii-povedeniya-agentov-chto-mozhet-skazat-ekonomicheskaya-teoriya
The Economist (2009). When a flow becomes a flood. Retrieved from http://www.economist.com/node/12972083
Thiel, M. (2001). Finance and economic growth – a review of theory and the available evidence. Retrieved from http://ec.europa.eu/economy_finance/publications/publication884_en.pdf
Zingales, L., & Rajan, R. (1995). What Do We Know about Capital Structure? Some Evidence from International Data. Journal of Finance, 50(5), 1421-60.
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (Creative Commons Attribution License 3.0 - CC BY 3.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
email@example.com, www.iseic.cz, ojs.journals.cz