Abstract

Although research shows that financial development accelerates aggregate economic growth, economists have not resolved conflicting theoretical predictions and ongoing policy disputes about the cross-firm distributional effects of financial development. Using cross-industry, cross-country data, the results are consistent with the view that financial development exerts a disproportionately positive effect on small firms. These results have implications for understanding the political economy of financial sector reform.

Publication Type:	Article
Additional Information:	This is the peer reviewed version of the following article: Beck, T., Demirguc-Kunt, A., Laeven, L. & Levine, R. (2008). Finance, Firm Size, and Growth. Journal of Money, Credit and Banking, 40(7), pp. 1379-1405., which has been published in final form at http://dx.doi.org/10.1111/j.1538-4616.2008.00164.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Publisher Keywords:	firm size; financial development; economic growth
Subjects:	H Social Sciences > HG Finance
Departments:	Bayes Business School > Finance

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