Where Is The Cheese? Synthesizing a Giant Literature on Causes and Consequences of Financial Sector Development

Selşah Paşalı, Selahattin

World Bank, Washington, DC

关键词: ACCESS TO FINANCE;    ACCESS TO INFORMATION;    ACCESSIBILITY;    ACCOUNTING;    ACCOUNTING STANDARDS;   

DOI  :  10.1596/1813-9450-6655
RP-ID  :  WPS6655

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

A likely image of the current state ofthe literature on financial sector development is that of aSwiss cheese with many holes inside important areas ofknowledge. The aim of this synthesis paper is to map thecurrent knowledge and ignorance (i.e., holes) in theliterature by providing a narrative for the empiricalfindings of a comprehensive literature review concerning thequantitative effects of financial development on economicgrowth and employment, and various determinants of financialsector development. The literature was restricted mostly tohigh-quality academic research that focuses on developingcountries over the period 1960-2012. Because of dataconstraints, this review also includes cross-countryanalyses, in which developed and developing countries areconsidered together. The main findings include (i) apositive relationship between financial development andeconomic growth and employment, subject to a number ofqualifications; (ii) a complicated relationship ofregulations and supervision to financial sector development;and (iii) a positive relationship between an enablinginstitutional environment and financial sector development.This review also identifies some missing avenues in theliterature and provides a number of suggestions for future work.