NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Bank-Based or Market-Based Financial Systems: Which is Better?

Ross Levine

NBER Working Paper No. 9138
Issued in September 2002
NBER Program(s):   CF   IFM

For over a century, economists and policy makers have debated the relative merits of bank-based versus market-based financial systems. Recent research, however, argues that classifying countries as bank-based or market is not a very fruitful way to distinguish financial systems. This paper represents the first broad, cross-country examination of which view of financial structure is more consistent with the data. The results indicate that although overall financial development is robustly linked with economic growth, there is no support for either the bank-based or market-based view.

download in pdf format
   (503 K)

email paper

This paper is available as PDF (503 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9138

Published: Levine, Ross. "Bank-based Or Market-based Financial Systems: Which Is Better?," Journal of Financial Intermediation, 2002, v11(4,Oct), 398-428. citation courtesy of

Users who downloaded this paper also downloaded these:
Rousseau and Sylla Financial Systems, Economic Growth, and Globalization
Barth, Caprio, and Levine Banking Systems around the Globe: Do Regulation and Ownership Affect Performance and Stability?
Levine w10766 Finance and Growth: Theory and Evidence
Rajan and Zingales w5758 Financial Dependence and Growth
La Porta, Lopez-de-Silanes, Shleifer, and Vishny w5661 Law and Finance
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us