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Cited by 426Banking stability, regulation, efficiencyFinTech, Crowdfunding, Digital FinanceMonetary Policy and Economic Impact

Financial innovation: The bright and the dark sides

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Beck, Thorsten, Chen, Tao, Lin, Chen, Song, Frank M.·2016·Journal of Banking & Finance
DOI 10.1016/j.jbankfin.2016.06.012
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  • Laeven, Levine, and Michalopoulos (2015) and Beck, Chen, Lin, and Song (2016) find that financial innovation raises the pace of economic growth.

    “Using different measures of financial innovation and a panel econometric framework, they find that financial innovation boosts the rate of economic growth.”

    From Finance, Growth, and Inequality (2021) · cites this paper as Beck, Chen, Lin, and Song (2016)

    Section 4.3 (page unavailable) explicitly says the authors do not find that countries or industries grow faster with higher financial innovation. They instead find that innovation helps them exploit growth opportunities, producing growth effects relative to overall country or industry growth. That contradicts the unqualified attribution that they found innovation boosts the economic growth rate. (LLM, conf=0.88)

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Cited by

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Authors
Beck, T., Chen, T., Lin, C., & Song, F. M.
Affiliations
  • City, University of London (GB)
  • Nanyang Technological University (SG)
  • University of Hong Kong (HK)
Corresponding author
Lin, Chen
ORCID
Venue
Journal of Banking & Finance
Publisher
Elsevier BV
Published
2016-11
Volume
72
Pages
28-51
ISSN
0378-4266 (ISSN-L)
DOI
10.1016/j.jbankfin.2016.06.012
OpenAlex
W3125554836
Cited by
426
References
2
Citations by year
2026: 64 · 2025: 67 · 2024: 64 · 2023: 54 · 2022: 38 · 2021: 46 · 2020: 29 · 2019: 21 · 2018: 18 · 2017: 11 · 2016: 3 · 2014: 9 · 2013: 1
FWCI
29.61
Type
journal article
Language
en
Open access
Licence
www.elsevier.com/tdm/userlicense/1.0/ (tdm)
Locations
  • Journal of Banking & Finance (publishedVersion)
  • City Research Online (City University London) (acceptedVersion)
  • DR-NTU (Nanyang Technological University) (submittedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
  • Social Sciences › Business, Management and Accounting › Management Information Systems › FinTech, Crowdfunding, Digital Finance
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
Keywords
financial innovation, bank growth, bank fragility, economic growth, financial crisis, securities market, financial regulation, bank performance, growth opportunities

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