Selşah Paşalı, Selahattin2014-02-042014-02-042013-10https://hdl.handle.net/10986/16870A likely image of the current state of the literature on financial sector development is that of a Swiss cheese with many holes inside important areas of knowledge. The aim of this synthesis paper is to map the current knowledge and ignorance (i.e., holes) in the literature by providing a narrative for the empirical findings of a comprehensive literature review concerning the quantitative effects of financial development on economic growth and employment, and various determinants of financial sector development. The literature was restricted mostly to high-quality academic research that focuses on developing countries over the period 1960-2012. Because of data constraints, this review also includes cross-country analyses, in which developed and developing countries are considered together. The main findings include (i) a positive relationship between financial development and economic growth and employment, subject to a number of qualifications; (ii) a complicated relationship of regulations and supervision to financial sector development; and (iii) a positive relationship between an enabling institutional environment and financial sector development. This review also identifies some missing avenues in the literature and provides a number of suggestions for future work.en-USCC BY 3.0 IGOACCESS TO FINANCEACCESS TO INFORMATIONACCESSIBILITYACCOUNTINGACCOUNTING STANDARDSASYMMETRIC INFORMATIONBANK ACCOUNTBANK ACCOUNTSBANK ASSETSBANK BRANCHBANK BRANCHESBANK LENDINGBANK REGULATIONBANK REGULATIONSBANK SPREADSBANK SUPERVISIONBANKING CRISESBANKING CRISISBANKING REGULATIONBANKING SECTORBANKING SECTOR DEVELOPMENTBANKING SECTOR REFORMBANKING SECTOR REFORMSBANKING SECTORSBANKING STRUCTUREBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBARRIERS TO COMPETITIONBARRIERS TO ENTRYBONDBOND MARKETBOND MARKET CAPITALIZATIONBRITISH LEGAL ORIGINCAPITAL ACCOUNTCAPITAL ACCOUNT LIBERALIZATIONCAPITAL ACCOUNT RESTRICTIONSCAPITAL ACCOUNTSCAPITAL ACCUMULATIONCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKETSCAPITAL REQUIREMENTSCENTRAL BANKCOMMERCIAL BANKCOMMERCIAL BANKSCONTRACT ENFORCEMENTCONTRACTUAL SAVINGSCONTRACTUAL SAVINGS INSTITUTIONSCORPORATE GOVERNANCECORRUPTIONCOUNTRY RISKCREDIT ALLOCATIONCREDIT BUREAUSCREDIT GROWTHCREDIT INFORMATIONCREDIT REGISTRIESCREDIT RISKCREDITORCREDITOR RIGHTSCREDITORSCRISIS COUNTRIESCURRENCYCURRENCY CRISESCURRENCY CRISISDEBTDEPOSITDEPOSIT INSURANCEDEPOSIT MONEY BANKDEPOSITORSDEPOSITSDERIVATIVESDEVELOPING COUNTRIESDISCLOSURE OF INFORMATIONDISCLOSURE REQUIREMENTSDOMESTIC BANKINGDOMESTIC BANKING MARKETSDOMESTIC BANKSDOMESTIC CREDITDOMESTIC FINANCIAL MARKETDOMESTIC MARKETECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC GROWTHEMERGING MARKETSEMPLOYMENT GROWTHENTRY BARRIERSEQUITY MARKETEQUITY MARKETSFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEPTHFINANCIAL DEREGULATIONFINANCIAL DEVELOPMENTFINANCIAL FRAGILITYFINANCIAL HISTORYFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL LIBERALIZATIONFINANCIAL OPENNESSFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTOR REFORMFINANCIAL STABILITYFINANCIAL STRUCTUREFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN BANKFOREIGN BANK ENTRYFOREIGN BANK PARTICIPATIONFOREIGN BANKSFOREIGN INVESTMENTGOVERNMENT BANKSGOVERNMENT OWNERSHIPGROSS DOMESTIC PRODUCTHOUSEHOLD INCOMEHOUSEHOLDSINCOME GROUPINCUMBENT BANKSINEQUALITYINFLATIONINFLATION RATESINFORMATION SERVICESINFORMATION SHARINGINSTITUTIONAL INVESTORINSURANCE MARKETINSURANCE MARKETSINSURANCE PENETRATIONINSURANCE PREMIUMINTEREST RATEINTEREST RATE CONTROLSINTERNATIONAL BANKINTERNATIONAL CAPITALINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL SETTLEMENTSINVENTORYINVESTMENT CLIMATELABOR MARKETLABOR MARKETSLACK OF ACCESSLACK OF COMPETITIONLEGAL CONSTRAINTSLEGAL ENVIRONMENTLEGAL FRAMEWORKLENDING AGREEMENTLEVEL OF RISKLIFE INSURANCELIQUIDITYLIQUIDITY CONSTRAINTSLOANMACRO-STABILITYMARKET ACCESSMARKET DEPTHMARKET DISCIPLINEMARKET DISTORTIONSMARKET LIQUIDITYMICRO-FINANCEMICRO-FINANCE INSTITUTIONSMICROFINANCEMONETARY FUNDMORAL HAZARDNONPERFORMING LOANSNPLOPEN ECONOMIESOUTPUT LOSSOUTPUT LOSSESOVERHEAD COSTSPENSIONPENSION ASSETSPENSION FUNDSPENSION REFORMSPENSION SYSTEMSPENSIONSPRIVATE CREDITPRIVATE CREDIT BUREAUSPRIVATE ENTERPRISESPROFITABILITYPUBLIC REGISTRIESREAL ESTATEREGULATORY FRAMEWORKREGULATORY GOVERNANCERESERVERESERVE REQUIREMENTSRETURNRETURN ON ASSETSRETURNSRISK DIVERSIFICATIONRISK SHARINGRULE OF LAWRURAL BANKSSAVINGS SCHEMESSECURITIESSHARE OF ASSETSSHAREHOLDERSSTOCK MARKETSTOCK MARKET CAPITALIZATIONSTOCK MARKET DEVELOPMENTSTOCK MARKETSSUPERVISORY POWERTAXTAX INCENTIVETECHNICAL ASSISTANCETRANSITION COUNTRIESTRANSITION ECONOMIESUNEMPLOYMENTWorld Bank10.1596/1813-9450-6655