Finance and Growth: Schumpeter Might Be Right

  title={Finance and Growth: Schumpeter Might Be Right},
  author={Robert G. Levine Ross King},
  journal={Quarterly Journal of Economics},
  • R. King
  • Published 1 August 1993
  • Economics
  • Quarterly Journal of Economics
Joseph Schumpeter argued in 1911 that the services provided by financial intermediaries - mobilizing savings, evaluating projects, managing risk, monitoring managers, and facilitating transactions -stimulate technological innovation and economic development. The authors present evidence that supports this view. Examining a cross-section of about 80 countries for the period 1960-89, they find that various measures of financial development are strongly associated with both current and later rates… 

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