This article presents a review of the literature on finance and growth. Theoretical contributions show that the existence of financial institutions, motivated by the reduction of risk aversion and asymmetric information between borrowers and lenders, allows a better resources allocation which, in turn, leads to capital accumulation and technological innovation. Empirical analyses, by adopting different techniques able to measure the functions performed by financial systems, meant to identify the channels through which financial development enhances economic growth, and to attenuate endogeneity biases, suggest that policy makers should take into account the role played by financial systems in sustaining growth.
"Financial development and economic growth. A theoretical and empirical overview"
PIETROVITO F
2012-01-01
Abstract
This article presents a review of the literature on finance and growth. Theoretical contributions show that the existence of financial institutions, motivated by the reduction of risk aversion and asymmetric information between borrowers and lenders, allows a better resources allocation which, in turn, leads to capital accumulation and technological innovation. Empirical analyses, by adopting different techniques able to measure the functions performed by financial systems, meant to identify the channels through which financial development enhances economic growth, and to attenuate endogeneity biases, suggest that policy makers should take into account the role played by financial systems in sustaining growth.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
