RIEB Seminar (Jointly supported by:Grant-in-Aid for Scientific Research (S))

Date&Time Thursday, April 21, 2016, 5:00pm-6:30pm
Place Seminar Room at RIEB (Kanematsu Memorial Hall, 1st Floor)
Intended Audience Faculties, Graduate Students and People with Equivalent Knowledge
Language English
Note Copies of the paper will be available at Office of Promoting Research Collaboration.

5:00pm-6:30pm

Speaker Kul LUINTEL
Affiliation Cardiff Business School, Cardiff University
Topic Financial Development, Structure and Growth: New Data, Method and Results
Abstract The existing weight of evidence suggests that financial structure (the classification of a financial system as bank-based versus market-based) is irrelevant for economic growth. This contradicts the common belief that the institutional structure of a financial system matters. We re-examine this issue using a novel dataset covering 69 countries over 1989-2011 in a Bayesian framework. Our results are conformable to the belief - a market-based system is relevant - with sizable economic effects for the high-income but not for the middle-and-low-income countries. Our findings provide a counterexample to the weight of evidence. We also identify a regime shift in 2008.