Credit vs. payment services: financial development and economic activity revisited

The purpose of this paper is to assess whether the banking system, over and beyond its credit function, has a significant impact on per capita GDP by providing means of payment. An annual database of 85 countries spanning the 1980-2008 period is exploited to this end. On the descriptive front, we fi...

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Detalles Bibliográficos
Autores principales: Bebczuk, Ricardo Néstor, Burdisso, Tamara, Sangiácomo, Máximo
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2013
Materias:
Ciencias Económicas
JEL: C33, G20, O40
banco
crédito
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/45922
http://www.depeco.econo.unlp.edu.ar/doctrab/doc97.pdf
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-45922
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
JEL: C33, G20, O40
banco
crédito
spellingShingle Ciencias Económicas
JEL: C33, G20, O40
banco
crédito
Bebczuk, Ricardo Néstor
Burdisso, Tamara
Sangiácomo, Máximo
Credit vs. payment services: financial development and economic activity revisited
topic_facet Ciencias Económicas
JEL: C33, G20, O40
banco
crédito
description The purpose of this paper is to assess whether the banking system, over and beyond its credit function, has a significant impact on per capita GDP by providing means of payment. An annual database of 85 countries spanning the 1980-2008 period is exploited to this end. On the descriptive front, we find that richer economies exhibit higher and increasing levels of demand deposits and lower levels of currency than poor countries. While this was to be expected, more surprising is the fact that the currency to GDP ratio did not decrease much over time, regardless of income level differences. In turn, our regressions confidently support the hypothesis that banks contribute to economic development not only as credit suppliers but also by facilitating transactions. Specifically, along with the ratio of private credit to GDP, the ratio of demand deposits to currency seems to exert a positive influence on per capita GDP. The results are robust for different model specifications. These findings have valuable implications for a better understanding of the channels through which the banking system affects the economy.
format Articulo
Documento de trabajo
author Bebczuk, Ricardo Néstor
Burdisso, Tamara
Sangiácomo, Máximo
author_facet Bebczuk, Ricardo Néstor
Burdisso, Tamara
Sangiácomo, Máximo
author_sort Bebczuk, Ricardo Néstor
title Credit vs. payment services: financial development and economic activity revisited
title_short Credit vs. payment services: financial development and economic activity revisited
title_full Credit vs. payment services: financial development and economic activity revisited
title_fullStr Credit vs. payment services: financial development and economic activity revisited
title_full_unstemmed Credit vs. payment services: financial development and economic activity revisited
title_sort credit vs. payment services: financial development and economic activity revisited
publishDate 2013
url http://sedici.unlp.edu.ar/handle/10915/45922
http://www.depeco.econo.unlp.edu.ar/doctrab/doc97.pdf
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AT sangiacomomaximo creditvspaymentservicesfinancialdevelopmentandeconomicactivityrevisited
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