Finance and Oil. Is there a Resource Curse in Financial Development?

T.H.L. Beck

Research output: Working paperDiscussion paperOther research output

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Abstract

This paper shows that the finance and growth relationship is as important in resource-based economies as in other economies. This paper also documents less developed financial systems in resource-based economies and banks that are more liquid, better capitalized and more profitable, but give fewer loans to firms. Firms in resource-based economies use less external finance and a smaller share of them uses bank loans, although there is the same level of demand as in other countries, thus pointing to supply constraints. Overall, there is some indication of a natural resource curse in financial development, which falls more on enterprises than on households. This calls for intensified efforts in resource-based economies to deepen and broaden financial systems.
Original languageEnglish
Place of PublicationTilburg
PublisherEconomics
Volume2011-017
Publication statusPublished - 2011

Publication series

NameCentER Discussion Paper
Volume2011-017

Fingerprint

Finance
Resource curse
Financial development
Resource-based
Financial system
Loans
Finance and growth
Natural resource curse
Household
Bank loans
External finance

Keywords

  • Financial Development
  • Natural Resource Curse

Cite this

Beck, T. H. L. (2011). Finance and Oil. Is there a Resource Curse in Financial Development? (CentER Discussion Paper; Vol. 2011-017). Tilburg: Economics.
Beck, T.H.L. / Finance and Oil. Is there a Resource Curse in Financial Development?. Tilburg : Economics, 2011. (CentER Discussion Paper).
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Beck, THL 2011 'Finance and Oil. Is there a Resource Curse in Financial Development?' CentER Discussion Paper, vol. 2011-017, Economics, Tilburg.

Finance and Oil. Is there a Resource Curse in Financial Development? / Beck, T.H.L.

Tilburg : Economics, 2011. (CentER Discussion Paper; Vol. 2011-017).

Research output: Working paperDiscussion paperOther research output

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AB - This paper shows that the finance and growth relationship is as important in resource-based economies as in other economies. This paper also documents less developed financial systems in resource-based economies and banks that are more liquid, better capitalized and more profitable, but give fewer loans to firms. Firms in resource-based economies use less external finance and a smaller share of them uses bank loans, although there is the same level of demand as in other countries, thus pointing to supply constraints. Overall, there is some indication of a natural resource curse in financial development, which falls more on enterprises than on households. This calls for intensified efforts in resource-based economies to deepen and broaden financial systems.

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KW - Natural Resource Curse

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Beck THL. Finance and Oil. Is there a Resource Curse in Financial Development? Tilburg: Economics. 2011. (CentER Discussion Paper).