Patterns of IndustrialDevelopment Revisited : The Role of Finance

Fisman, Raymond ; Love, Inessa

World Bank, Washington, DC

关键词: INDUSTRIAL DEVELOPMENT;    CAPITAL MARKETS;    ECONOMIC GROWTH;    FINANCIAL DEVELOPMENT;    PRIVATE BANKS;   

DOI  :  10.1596/1813-9450-2877
RP-ID  :  WPS2877

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The authors reexamine the role offinancial market development in the intersectoral allocationof resources. First, they characterize the assumptionsunderlying previous work in this area, in particular, thatof Rajan and Zingales (1998). The authors argue that Rajanand Zingales (1998) implicitly test whether financialintermediaries allow firms to better respond to globalshocks to growth opportunities. Second, the authors proposea more efficient alternative test of this hypothesis usingstatistical techniques developed in the social networksliterature. Specifically, they find that countries have morehighly correlated growth rates across sectors when they havewell-developed financial markets, suggesting that financialmarkets play an important role in allowing firms to takeadvantage of global growth opportunities. These results areparticularly strong when financial development takes intoaccount both the level and composition of financialdevelopment: private banking appears to play a particularlyimportant role in resource allocation. The authors'technique allows them to further distinguish between the"growth opportunities" hypothesis stated above andthe alternative "finance and external dependence"hypothesis, which implies that countries with similar levelsof financial development should specialize in similarsectors. They do not find evidence to support thisalternative view of finance and development.