TY  - JOUR
AU  - Demirguc-Kunt,Asli
AU  - Feyen,Erik
AU  - Levine,Ross
TI  - The Evolving Importance of Banks and Securities Markets
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 18004
PY  - 2012
Y2  - April 2012
UR  - http://www.nber.org/papers/w18004
L1  - http://www.nber.org/papers/w18004.pdf
N1  - Author contact info:
Asli Demirguc-Kunt
The World Bank
1818 H Street
Washington, DC  20433
E-Mail: ademirguckunt@worldbank.org

Erik Feyen
The World Bank
1818 H Street, NW
Washington, DC 20433
E-Mail: efeijen@worldbank.org

Ross Levine
Haas School of Business
University of California at Berkeley
545 Student Services Building, #1900 (F685)
Berkeley, CA 94720-1900
Tel: 510-643-1419
E-Mail: Ross_levine@haas.berkeley.edu
AB  - This paper examines the evolving importance of banks and securities markets during the process of economic development. We find that as countries develop economically, (1) the size of both banks and securities markets increases relative to the size of the economy, (2) the association between an increase in economic output and an increase in bank development becomes smaller, and (3) the association between an increase in economic output and an increase in securities market development becomes larger. The results are consistent with theories predicting that as economies develop, the services provided by securities markets become more important for economic activity, while those provided by banks become less important.
ER  -