Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7364487 | Journal of International Financial Markets, Institutions and Money | 2016 | 49 Pages |
Abstract
The existing weight of evidence suggests that financial structure (the classification of a financial system as bank-based versus market-based) is irrelevant for economic growth. This contradicts the common belief that the institutional structure of a financial system matters. We re-examine this issue using a novel dataset covering 69 countries over 1989-2011 in a Bayesian framework. Our results are conformable to the belief - a market-based system is relevant - with sizable economic effects for the high-income but not for the middle-and-low-income countries. Our findings provide a counterexample to the weight of evidence. We also identify a regime shift in 2008.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kul B. Luintel, Mosahid Khan, Roberto Leon-Gonzalez, Guangjie Li,