Finance, Firm Size, and Growth Thorsten Beck, Asli Demirguc-Kunt, Luc Laeven and...

Finance, Firm Size, and Growth Thorsten Beck, Asli Demirguc-Kunt, Luc Laeven and Ross Levine* June 7, 2006 Abstract: This paper provides empirical evidence that pecuniary development boosts the appendage of small firms more than large firms and indeed provides information on conflicting theoretical predictions about the distributional effects of financial development. Using cross-industry, cross-country info, the results are accordant with the view that financial development exerts a disproportionately haughty effect on small firms. These results have implications for understanding the policy-making economy of financial sector reform. Keywords: Firm Size; fiscal Development; Economic Growth JEL Classification: G2, L11, L25, O1 * Beck, Demirgüç-Kunt: World aver; Laeven: International Monetary Fund and CEPR; Levine: Brown University and NBER. Corresponding reason: Ross Levine, Department of Economics, Brown University, Providence, Rhode Island, 02912, Email: Ross_Levine@brown.edu.

We would like to thank mare Carkovic, Stijn Claessens, Bill Easterly, Alan Gelb, Krishna Kumar, Michael Lemmon, Karl Lins, Alan Winters and seminar participants at the World Bank, University of Minnesota, New York University, University of North Carolina, the University of Stockholm, Tufts University, and the University of universal time for helpful comments, and Ying Lin for excellent research assistance. We also thank Lori Bowan at the U.S. Census Bureau for help with the U.S. Economic Census data on firm size distribution. This paper was partly written while the third author was at the World Bank. This papers findings, interpretations, and conclusions are entirely those of the authors and do not inevitably represent the views of the International Monetary Fund, the World Bank, their Executive Directors, or the countries they represent. I. Introduction Although research shows that financial development accelerates aggregate economic growth (Levine, 2006), economists have... If you want to get a full essay, order it on our website: Orderessay

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