The Role of Finance in Economic Development: Benefits, Risks, and Politics

T.H.L. Beck

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Abstract

Abstract: Theoretical and empirical research has shown that a sound and effective financial system is critical for economic development and growth. The financial system, however, is also subject to boom and bust cycles and fragility, with negative repercussions for the real economy. Further, the political structure of societies, often pre-determined by historic experience, is critical for the structure and development of the financial system. This paper is a critical survey of three related strands of literature – the finance and growth literature, the literature on financial fragility, and the politics and finance literature.
Original languageEnglish
Place of PublicationTilburg
PublisherEconomics
Number of pages74
Volume2011-141
Publication statusPublished - 2011

Publication series

NameCentER Discussion Paper
Volume2011-141

Keywords

  • Financial Development
  • Financial Fragility
  • Finance and Politics
  • Economic Development
  • Access to Finance
  • Banking Crisis

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