01774cas a2200253 a 4500 AALejournalIMF002091 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852455 1018-5941 BD-DhAAL BD-DhAAL Guidotti, Pablo. Financial Development and Economic Growth / Pablo Guidotti, Jose De Gregorio. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the empirical relationship between long-run growth and the degree of financial development, proxied by the ratio of bank credit to the private sector as a fraction of GDP. We find that this proxy enters significantly and with a positive sign in growth regressions on a large cross-country sample, but with a negative sign using panel data for Latin America. Our findings suggest that the main channel of transmission from financial development to growth is the efficiency of investment, rather than its volume. We also present a model where the negative correlation between financial intermediation and growth results from financial liberalization in a poor regulatory environment. Mode of access: Internet De Gregorio, Jose. IMF Working Papers; Working Paper ; No. 1992/101 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/101/001.1992.issue-101-en.xml IMF e-Library