Financial Architecture and Economic Performance: International Evidence

@article{Tadesse2002FinancialAA,
  title={Financial Architecture and Economic Performance: International Evidence},
  author={Solomon Ayele Tadesse},
  journal={Development Economics: Microeconomic Issues in Developing Economies eJournal},
  year={2002}
}
  • S. Tadesse
  • Published 2002
  • Business, Economics
  • Development Economics: Microeconomic Issues in Developing Economies eJournal
The paper examines the relations between the architecture of an economy's financial system - its degree of market orientation - and economic performance in the real sector. We argue that the relative effectiveness of bank-based versus market-based financial systems depends on the strength of the contractual environment and the extent of agency problems in the economy. We find that while market-based systems outperform bank-based systems among countries with developed financial sectors, bank… Expand
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What are the relative advantages and disadvantages of bank-based financial systems (as in Germany and Japan) and market-based financial systems (as in England and the United States). Does financialExpand
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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 asExpand
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Introduction As West European countries integrate their economies and East European countries move away from communism, both are reassessing their economic and financial institutions. One of the mostExpand
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