Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

Financial Development, Growth, and the Distribution of Income

Jeremy Greenwood and Boyan Jovanovic
Journal of Political Economy
Vol. 98, No. 5, Part 1 (Oct., 1990), pp. 1076-1107
Stable URL: http://www.jstor.org/stable/2937625
Page Count: 32
  • Read Online (Free)
  • Download ($14.00)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Financial Development, Growth, and the Distribution of Income
Preview not available

Abstract

A paradigm is presented in which both the extent of financial intermediation and the rate of economic growth are endogenously determined. Financial intermediation promotes growth because it allows a higher rate of return to be earned on capital, and growth in turn provides the means to implement costly financial structures. Thus financial intermediation and economic growth are inextricably linked in accord with the Goldsmith-McKinnon-Shaw view on economic development. The model also generates a development cycle reminiscent of the Kuznet hypothesis. In particular, in the transition from a primitive slow-growing economy to a developed fast-growing one, a nation passes through a stage in which the distribution of wealth across the rich and poor widens.

Page Thumbnails

  • Thumbnail: Page 
1076
    1076
  • Thumbnail: Page 
1077
    1077
  • Thumbnail: Page 
1078
    1078
  • Thumbnail: Page 
1079
    1079
  • Thumbnail: Page 
1080
    1080
  • Thumbnail: Page 
1081
    1081
  • Thumbnail: Page 
1082
    1082
  • Thumbnail: Page 
1083
    1083
  • Thumbnail: Page 
1084
    1084
  • Thumbnail: Page 
1085
    1085
  • Thumbnail: Page 
1086
    1086
  • Thumbnail: Page 
1087
    1087
  • Thumbnail: Page 
1088
    1088
  • Thumbnail: Page 
1089
    1089
  • Thumbnail: Page 
1090
    1090
  • Thumbnail: Page 
1091
    1091
  • Thumbnail: Page 
1092
    1092
  • Thumbnail: Page 
1093
    1093
  • Thumbnail: Page 
1094
    1094
  • Thumbnail: Page 
1095
    1095
  • Thumbnail: Page 
1096
    1096
  • Thumbnail: Page 
1097
    1097
  • Thumbnail: Page 
1098
    1098
  • Thumbnail: Page 
1099
    1099
  • Thumbnail: Page 
1100
    1100
  • Thumbnail: Page 
1101
    1101
  • Thumbnail: Page 
1102
    1102
  • Thumbnail: Page 
1103
    1103
  • Thumbnail: Page 
1104
    1104
  • Thumbnail: Page 
1105
    1105
  • Thumbnail: Page 
1106
    1106
  • Thumbnail: Page 
1107
    1107