000			02717cam a22003134a 4500
001			7723
003			The World Bank
005			20181114094720.0
006			m d
007			cr cn|||||||||
008			160818s2016 dcu o i00 0 eng
024	8		_a10.1596/1813-9450-7723
035			_a(The World Bank)7723
100	1		_aIslam, Roumeen.
245	1	0	_aFinancial Systems, Growth, and Volatility _h[electronic resource] : _bSearching for the Perfect Fit / _cRoumeen Islam.
260			_aWashington, D.C. : _bThe World Bank, _c2016.
300			_a1 online resource (37 p.)
520	3		_aThis paper builds on recent research examining the impact of finance on growth, looking at the effect of the financial system on volatility in gross domestic product per capita and consumption per capita growth. It also examines the impact of credit on the composition of growth. The findings show that financial development smooths growth in gross domestic product and consumption per capita, but only up to a point. At high levels of credit, further credit is positively associated with volatility even after controlling for the quality of institutions and periods of financial crises. In large financial systems, finance may not help individuals smooth consumption volatility. The threshold at which finance's effect may be volatility enhancing may be lower than previously thought. In terms of the impact on growth, total credit (and credit to firms) has a nonlinear relationship, with rising credit supporting higher growth up to a point, beyond which the additional impact of finance on growth is negative. This can be explained by finance flowing into less productive activities (or drawing other resources into less productive activities). In addition, household credit is negatively related to manufacturing sector growth, although credit to firms has a positive relationship to manufacturing growth. This may be explained by the fact that much of household credit is used to finance the consumption (including imports) of goods and services broadly (not just manufacturing sector goods) or investment in housing.
650		4	_aAccess to finance
650		4	_aDebt markets
650		4	_aEconomic conditions and volatility
650		4	_aFinance and financial sector development
650		4	_aMacroeconomics and economic growth
650		4	_aPrivate sector development
700	1		_aIslam, Roumeen.
776	1	8	_aPrint Version: _iIslam, Roumeen. _tFinancial Systems, Growth, and Volatility : Searching for the Perfect Fit. _dWashington, D.C. : The World Bank, 2016.
830		0	_aPolicy research working papers.
830		0	_aWorld Bank e-Library.
856	4	0	_uhttp://elibrary.worldbank.org/doi/book/10.1596/1813-9450-7723
999			_c29196 _d29196