Click here for search results
New firm formation and industry growth - does having a market- or bank-based system matter?, Volume 1
 
Author:Beck, Thorsten; Levine, Ross; Collection Title:Policy, Research working paper ; no. WPS 2383
Date Stored:2000/08/14Document Date:2000/06/30
Document Type:Policy Research Working PaperSubTopics:Achieving Shared Growth; Governance Indicators; Payment Systems & Infrastructure; Economic Theory & Research; Banks & Banking Reform; Fiscal & Monetary Policy; Decentralization; Financial Economics
Language:EnglishMajor Sector:Finance
Report Number:WPS2383Sub Sectors:Financial Sector Development
Volume No:1  

Summary: The authors find no evidence for the superiority of either market-based or bank-based financial systems for industries dependent on external financing. But they find overwhelming evidence that industries heavily dependent on external finance grow faster in economies with higher levels of financial development, and with better legal protection for outside investors - including strong creditor and shareholder rights and strong contract enforcement mechanisms. Financial development also stimulates the establishment of new firms, which is consistent with the Schumpeterian view of creative destruction. Financial development matters. That the financial system is bank-based on market-based offers little additional information.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 50 pagesOfficial version*3.5 (approx.)
TextText version**
How To Order
Light-Weight Documents
Lighter (less MB) documents which may or may not be the final, official version
File TypeDescriptionFile Size (mb)
PDF 44 pagesWPS23830.13

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/6DFFX72QW0