Financial Development : Structure and Dynamics

doi:10.1093/wber/lht005

Publication:
Financial Development : Structure and Dynamics

creativeworkseries.issn	1564-698X
dc.contributor.author	Feyen, Erik
dc.contributor.author	de la Torre, Augusto
dc.contributor.author	Ize, Alain
dc.date.accessioned	2015-03-19T14:03:35Z
dc.date.available	2015-03-19T14:03:35Z
dc.date.issued	2013-09
dc.description.abstract	This paper analyzes the process of financial development over the last three to four decades from the perspective of the fundamental frictions (agency and collective) to which economic agents were exposed. A comprehensive statistical benchmarking analysis showed that financial development followed regular dynamics that can be largely explained by the underlying frictions. In particular, the sequencing, returns to scale, and shape of the developmental paths for various types of financial activities—including public debt, banking, insurance, asset management, and capital markets—broadly matched benchmark predictions. Reflecting financial innovation and the dynamic interaction between financial and economic development, financial development paths were also found to be strongly dependent on initial conditions. At the same time, policy differences, including the failure to improve the quality of the enabling environment and prevent financial crashes (the dark side of finance), were found to explain a sizable share of the deviations of individual country paths from the benchmarks.	en
dc.identifier.citation	World Bank Economic Review
dc.identifier.doi	10.1596/21620
dc.identifier.issn	1564-698X
dc.identifier.uri	https://hdl.handle.net/10986/21620
dc.language.iso	en_US
dc.publisher	Oxford University Press on behalf of the World Bank
dc.relation.ispartofseries	World Bank Economic Review
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject	asset management
dc.subject	asymmetric information
dc.subject	boom-bust cycle
dc.subject	capital market
dc.subject	economic development
dc.subject	financial development
dc.subject	enabling environment
dc.subject	financial structure
dc.subject	financial system
dc.subject	financial crisis
dc.subject	insurance
dc.subject	market failure
dc.title	Financial Development : Structure and Dynamics	en
dc.type	Journal Article	en
dc.type	Article de journal	fr
dc.type	Artículo de revista	es
dspace.entity.type	Publication
okr.date.disclosure	2015-03-19
okr.date.doiregistration	2025-05-06T11:38:56.226951Z
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Journal Article
okr.globalpractice	Finance and Markets
okr.identifier.doi	10.1093/wber/lht005
okr.journal.nbpages	514-41
okr.language.supported	en
okr.peerreview	Academic Peer Review
okr.topic	Finance and Financial Sector Development::Access to Finance
okr.topic	Finance and Financial Sector Development::Banks & Banking Reform
okr.topic	Finance and Financial Sector Development::Debt Markets
okr.topic	Finance and Financial Sector Development::Financial Crisis Management & Restructuring
okr.topic	Finance and Financial Sector Development::Financial Intermediation
okr.topic	Finance and Financial Sector Development::Financial Structures
okr.topic	Macroeconomics and Economic Growth::Economic Theory & Research
okr.unit	Office of the Chief Economist, Latin America and the Caribbean Region
okr.volume	27(3)
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