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AuthorUnited Nations Conference on Trade and Development
TitleBanks, Growth and Geography
Imprint Geneva, United Nations. 1997
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Descript iii, 22 p. : table


This paper presents a general equilibrium endogenous growth model, in which financial intermediaries evaluate the quality of projects, mobilize savings to finance the most promising ones and diversify risk. Information technology available to banks is linked to geographic proximity. This evaluation capacity increases the proportion of high-return projects being financed, and thereby accelerates economic growth. This positive effect does not depend on the degree of individuals' risk aversion

International Institute for Trade and Developement : UNCTAD CollectionUNCTAD/OSG/DP/127CHECK SHELVES

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