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Industry Growth and Capital Allocation: Does Having a Market- or Bank-Based System Matter? / Thorsten Beck, Ross Levine.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Beck, Thorsten.
Contributor:
National Bureau of Economic Research.
Levine, Ross.
Series:
Working Paper Series (National Bureau of Economic Research) no. w8982.
NBER working paper series no. w8982
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Industry Growth and Capital Allocation
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2002.
Summary:
Are market-based or bank-based financial systems better at financing the expansion of industries that depend heavily on external finance, facilitating the formation of new establishments, and improving the efficiency of capital allocation across industries? We find evidence for neither the market-based nor the bank-based hypothesis. While legal system efficiency and overall financial development boost industry growth, new establishment formation, and efficient capital allocation, having a bank-based or market-based system per se does not seem to matter much.
Notes:
Print version record
June 2002.

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