Finance, firm size, and growth
By: Thorsten Beck ... [et al.].
Contributors: Beck, Thorsten.; National Bureau of Economic Research.
Series: NBER working paper series -- no. 10983.; Working paper series (National Bureau of Economic Research) -- working paper no. 10983.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, Mass
Language: eng
Number of pages: 37
Subjects: Small business -- Economic aspects -- Developing countries; Finance -- Developing countries; Developing countries -- Economic conditions -- Econometric models
Description: "This paper examines whether financial development boosts the growth of small firms more than large firms and hence provides information on the mechanisms through which financial development fosters aggregate economic growth. We define an industry's technological firm size as the firm size implied by industry specific production technologies, including capital intensities and scale economies. Using cross-industry, cross-country data, the results indicate that financial development exerts a disproportionately large effect on the growth of industries that are technologically more dependent on small firms. This suggests that financial development accelerates economic growth by removing growth constraints on small firms and also implies that financial development has sectoral as well as aggregate growth ramifications"--National Bureau of Economic Research web site.
Notes: "December 2004."

Includes bibliographical references (p. 26-28).

Also available in PDF from the NBER world wide web site (www.nber.org).