Working Paper: NBER ID: w18946
Authors: Martin IHK; Asli Demirgüç-Kunt; Erik Feyen; Ross Levine
Abstract: This paper describes our construction of the Global Financial Development Database and uses the data to compare financial systems around the world. The database provides information on financial systems in 205 economies over the period from 1960 to 2010 and includes measures of (1) size of financial institutions and markets (financial depth), (2) degree to which individuals and firms can and do use financial services (access), (3) efficiency of financial intermediaries and markets in intermediating resources and facilitating financial transactions (efficiency), and (4) stability of financial institutions and markets (stability).
Keywords: No keywords provided
JEL Codes: G00; G01; G10; G20; O16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Effective financial institutions (G20) | Improved resource allocation (D61) |
| Improved resource allocation (D61) | Economic growth (O49) |
| Financial systems lower transaction costs (G29) | Facilitate trade and specialization (F10) |
| Facilitate trade and specialization (F10) | Technological innovation (O39) |
| Poor performance of financial systems (P34) | Curtail economic growth and opportunities (F69) |
| Financial market efficiency (G14) | Investment in high-return projects (G31) |
| Financial systems that mobilize savings and monitor investments (O16) | Economic stability and growth (O00) |
| Ineffective financial systems (P34) | Economic instability (E32) |