Rajan Zingales (1998) - Financial Dependence And Growth

From edegan.com
Revision as of 19:15, 29 September 2020 by Ed (talk | contribs)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigation Jump to search
Has bibtex key
Has article title Financial Dependence And Growth
Has author Rajan Zingales
Has year 1998
In journal
In volume
In number
Has pages
Has publisher
© edegan.com, 2016


  • Rajan, R., and Zingales, L. (1998), "Financial dependence and growth", American Economic Review, 88: 559-586. pdf


This paper examines whether financial development facilitates economic growth by scrutinizing one rationale for such a relationship: that financial development reduces the costs of external finance to firms. Specifically, we ask whether in dustrial sectors that are relatively more in need of external finance develop disproportionately faster in countries with more-developed financial markets. We find this to be true in a large sample of countries over the 1980's. We show this result is unlikely to be driven by omitted variables, outliers, or reverse causality.