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How Important Historically Were Financial Systems for Growth in the U.K., U.S., Germany, and Japan?

Authors :
Yishay Yafeh
Hideaki Miyajima
Franklin Allen
Richard Sylla
Forrest Capie
Caroline Fohlin
Geoffrey Wood
Source :
SSRN Electronic Journal.
Publication Year :
2010
Publisher :
Elsevier BV, 2010.

Abstract

The sources of finance for industrial development include (i) banks, (ii) securities markets, (iii) internal finance, (iv) alternative sources of finance such as angel finance, trade credit, families, and friends, and (v) governments. All four countries had sophisticated financial systems and all four grew successfully. The fact that they had different financial systems suggests that if there is an optimal financial structure for a country it does not lead to a significantly greater level of growth than other possible structures. The experiences of the four countries considered suggest that a variety of financial structures can lead to high rates of growth in real per capita GDP.

Details

ISSN :
15565068
Database :
OpenAIRE
Journal :
SSRN Electronic Journal
Accession number :
edsair.doi...........4d4374b49bd02e7c3e1639db1ee280de
Full Text :
https://doi.org/10.2139/ssrn.1701274