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Financial sector: does size matter?

Author

Listed:
  • Tatyana Zhuravleva

    (Gaidar Institute for Economic Policy)

Abstract

Huge empirical literature suggests the strong positive relationship between economic growth and size of financial sector. We document that this relationship is not robust, while the efficiency of financial sector measured by interest rate spread is strongly related to current and subsequent economic growth.

Suggested Citation

  • Tatyana Zhuravleva, 2013. "Financial sector: does size matter?," Economics Bulletin, AccessEcon, vol. 33(3), pages 1991-2000.
    • Handle: RePEc:ebl:ecbull:eb-12-00733
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I3-P187.pdf
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    References listed on IDEAS

    as
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    3. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
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    5. King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 513-542, December.
    6. Bhattacharya, Sudipto & Pfleiderer, Paul, 1985. "Delegated portfolio management," Journal of Economic Theory, Elsevier, vol. 36(1), pages 1-25, June.
    7. Allen, Franklin, 1990. "The market for information and the origin of financial intermediation," Journal of Financial Intermediation, Elsevier, vol. 1(1), pages 3-30, March.
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    More about this item

    Keywords

    financial sector efficiency; interest rate spread;

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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