sample of developed and emerging economies, we first show that the level of financial development is good only up to a point, after which it becomes a drag on growth. Second, focusing on advanced economies, we show that a fast-growing financial sector is detrimental to aggregate productivity growth. JEL classification: D92, E22, E44, O4 Keywords: Growth, dependence * financial development, credit booms, R&D intensity, financial Cecchetti is Economic Adviser at the Bank for International…
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