Bank-Based or Market-Based Financial Systems: Which is Better?

@article{Levine2002BankBasedOM,
  title={Bank-Based or Market-Based Financial Systems: Which is Better?},
  author={Ross Levine},
  journal={Banking \& Financial Institutions},
  year={2002}
}
  • R. Levine
  • Published 2002
  • Business, Economics
  • Banking & Financial Institutions
For over a century, economists and policy makers have debated the relative merits of bank-based versus market-based financial systems. Recent research, however, argues that classifying countries as bank-based or market is not a very fruitful way to distinguish financial systems. This paper represents the first broad, cross-country examination of which view of financial structure is more consistent with the data. The results indicate that although overall financial development is robustly linked… Expand
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