Skip to:
  1. Main navigation
  2. Main content
  3. Footer
Working Paper

Financial System Structure and Economic Development: Structure Matters

Download pdf
This paper investigates how the structure of a financial system—whether it is bank or market oriented—affects economic growth. In contrast to earlier research, which indicates that the financial system's structure is irrelevant for growth, I find that countries grow faster when they have flexible judicial system and more market-oriented financial systems.
07.01.2003ISSN 2573-7953 WP 03-05DOI 10.26509/frbc-wp-200305
Keywords economic growth, judicial flexibility, banks, stock market, financial development
JEL Classification Codes G0, K2, O4

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Ergungor, O. Emre. 2003. “Financial System Structure and Economic Development: Structure Matters.” Federal Reserve Bank of Cleveland, Working Paper No. 03-05. https://doi.org/10.26509/frbc-wp-200305