Financial Structure and Economic Growth: Cross-Country Comparisons of Banks, Markets, and Development

Author: Kent, Levine
Publisher:
Publish Date: 2006-11-01
Features: This book is a series of research reports specifically focused on global financial development and economic growth, led by the research team of the world-renowned economists T. Beck, Esrati Demirgü?-Kunt, and Ross Levine. In the book, the research team constructs for the first time a comprehensive and systematic database of financial development across countries. It presents information on the scale, productivity, and business activities of financial markets and institutions in 150 countries and regions, as well as a wealth of data on their political, economic, and social environments. This is the most comprehensive and authoritative financial development database in academia to date regarding such research. The research team further conducts scientific studies based on its database, not only establishing a new index system and methodology for evaluating financial development in countries but also challenging many traditional and popular beliefs. The book particularly points out that it is the overall level of financial development, rather than financial structure, that promotes economic growth. Moreover, differences in political and legal institutions also affect the relationship between financial development and economic growth. Therefore, the authors suggest that policymakers should focus less on financial structure and more on policy reforms related to legal frameworks, regulation, market promotion, and banking operations, believing that this approach may yield greater returns. This book elevates financial development research to a new level.