TY  - JOUR
AU  - Beck,Thorsten
AU  - Levine,Ross
TI  - Industry Growth and Capital Allocation: Does Having a Market- or Bank-Based System Matter?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8982
PY  - 2002
Y2  - June 2002
UR  - http://www.nber.org/papers/w8982
L1  - http://www.nber.org/papers/w8982.pdf
N1  - Author contact info:
Thorsten Beck
The World Bank
1818 H Street N.W.
Mail Stop MC 3-307
Washington, D.C. 20433
E-Mail: tbeck@worldbank.org

Ross Levine
Department of Economics
Brown University
64 Waterman Street
Providence, RI 02912
Tel: 401/863-2170
E-Mail: ross_levine@brown.edu
AB  - Are market-based or bank-based financial systems better at financing the expansion of industries that depend heavily on external finance, facilitating the formation of new establishments, and improving the efficiency of capital allocation across industries?  We find evidence for neither the market-based nor the bank-based hypothesis.  While legal system efficiency and overall financial development boost industry growth, new establishment formation, and efficient capital allocation, having a bank-based or market-based system per se does not seem to matter much.
ER  -