Nabi, Mahmoud Sami and Rajhi, Taoufik (2005): Banking, Credit Market Imperfection and Growth.
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We develop a new model that links capital market imperfection to banking emergence and economic growth. It is shown that the banking system emerges endogenously after a first stage of slow economic growth. Interestingly, economic growth increases after the emergence of banking but remains under its potential level. This is due to a credit rationing brake which decreases progressively as the economy develops. Another finding is that a reduction of credit market imperfection reduces the credit rationing stage.
|Item Type:||MPRA Paper|
|Original Title:||Banking, Credit Market Imperfection and Growth|
|Keywords:||endogenous growth, banking emergence, credit rationing, credit market imperfection|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Mahmoud Sami NABI|
|Date Deposited:||19. Aug 2010 00:44|
|Last Modified:||16. Feb 2013 02:35|
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