Finance, firm size, and growth / Thorsten Beck [et al.] Beck, Thorsten

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Beck, Thorsten
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Journal of Money, Credit & Banking
Business enterprises - Size.; Small business - Econometric models.; Small business - Case studies.
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. JEL codes: G2, L11, L25, O1 Keywords: firm size, financial development, economic growth.
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