Stock markets, banks, and growth: Panel evidence
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The impact of financial development on economic growth depends on the structures and fundamentals of an economy.
“Studies on the relationship between financial development and economic growth have revealed that the benefits of financial development on economic growth depends on the structures and fundamentals underlying the economy.”
From The impact of financial development on economic growth in sub-Saharan Africa. Does institutional quality matter? (2023) · cites this paper as Beck and Levine 2004
The exogenous components of stock market liquidity and bank development help explain economic growth.
“They confirm the Levine and Zervos (1998) findings using panel methods: the exogenous components of stock market liquidity and bank development help explain economic growth.”
From Finance, Growth, and Inequality (2021) · cites this paper as Beck and Levine (2004)
Industries naturally composed of smaller firms grow faster in countries with better-developed financial systems.
“Beck et al. (2004) discover that industries naturally composed of smaller firms grow faster in countries with better-developed financial systems”
From Finance, Growth, and Inequality (2021) · cites this paper as Beck et al. (2004)
Better functioning financial systems that reduce informational asymmetries may be disproportionately beneficial for industries naturally composed of small firms for technological reasons.
“As a result, better functioning financial systems that ameliorate informational asymmetries might be disproportionately beneficial for industries naturally composed of small firms for technological reasons.”
From Finance, Growth, and Inequality (2021) · cites this paper as Beck et al. (2004)
Small firms are often more informationally opaque and difficult to screen.
“They stress that small firms are often more informationally opaque and difficult to screen.”
From Finance, Growth, and Inequality (2021) · cites this paper as Beck et al. (2004)
Financial development is especially important for the growth of industries that, for technological reasons, are naturally composed of small firms.
“suggesting that financial development is especially ©International Monetary Fund.Not for Redistribution important for the growth of industries that, for technological reasons, are naturally composed of small firms.”
From Finance, Growth, and Inequality (2021) · cites this paper as Beck et al. (2004)
The existence of financial institutions and services precedes realising economic growth.
“Against this argument, it is possible to conclude that the existence of financial institutions and services precedes realising economic growth (Beck and Levine 2004; Odhiambo 2009; Ibrahim and Alagidede 2018).”
From Financial Inclusion and Economic Growth in Sub-Saharan Africa—A Panel ARDL and Granger Non-Causality Approach (2023) · cites this paper as Beck and Levine 2004
The economic growth and trade openness relationship is positive in developed as well as developing countries.
“These researchers have confirmed that the economic growth and trade openness relationship is positive in developed as well in the developing countries.”
From The effect of financial development on economic Growth: Evidence from south Asian developing countries (2022) · cites this paper as Thorsten Beck & Levine, 2004
Beck and Levine (2004), Deyshappriya (2016), and Rousseau and Wachtel (2000) found a positive role of stock markets in economic growth.
“Furthermore (Thorsten Beck & Levine, 2004), (Deyshappriya, 2016), (Rousseau & Wachtel, 2000) have also found the positive role of stock markets in economic growth.”
From The effect of financial development on economic Growth: Evidence from south Asian developing countries (2022) · cites this paper as Thorsten Beck & Levine, 2004
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- Authors
- Beck, T., & Levine, R.
- Affiliations
- World Bank (US)
- Corresponding author
- Beck, Thorsten
- Venue
- Journal of Banking & Finance
- Publisher
- Elsevier BV
- Published
- 2004-03
- Volume
- 28
- Issue
- 3
- Pages
- 423-442
- ISSN
- 0378-4266 (ISSN-L)
- OpenAlex
- W3124803532
- Cited by
- 2,067
- References
- 48
- Citations by year
- 2026: 71 · 2025: 102 · 2024: 97 · 2023: 110 · 2022: 118 · 2021: 141 · 2020: 138 · 2019: 144 · 2018: 99 · 2017: 121 · 2016: 111 · 2015: 106 · 2014: 109 · 2013: 103 · 2012: 95
- FWCI
- 58.91
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of Banking & Finance (publishedVersion)
- Funders
- World Bank Group
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
- Keywords
- stock market, banking sector, economic growth, financial development, dynamic panel data, simultaneity bias, omitted variable bias, country-specific effects
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