Open Access
Liquidity creation, investment, and growth
Loading...
Files
Liquidity_creation_investment_and_growth_Art_2022.pdf (2.04 MB)
Full text in Open Access, Published version
License
Attribution 4.0 International
Access Rights
Cadmus Permanent Link
Full-text via DOI
ISBN
ISSN
1381-4338; 1573-7020
Issue Date
Type of Publication
Keyword(s)
LC Subject Heading
Other Topic(s)
EUI Research Cluster(s)
Initial version
Published version
Succeeding version
Preceding version
Published version part
Earlier different version
Initial format
Citation
Journal of economic growth, 2023, Vol. 28, pp. 297-336
Cite
BECK, Thorsten Harald Leopold, DÖTTLING, Robin, LAMBERT, Thomas, VAN DIJK, Mathijs, Liquidity creation, investment, and growth, Journal of economic growth, 2023, Vol. 28, pp. 297-336 - https://hdl.handle.net/1814/76483
Abstract
Using panel analysis for a large cross-section of countries, we fnd that liquidity creation by banks is positively associated with economic growth at country and industry levels. Liquidity creation boosts tangible, but not intangible investment and does not contribute to growth in countries with a high share of industries reliant on intangible assets. These fndings are consistent with a theoretical model in which liquidity creation fosters investment only if it is sufciently tangible. Our results shed light on important heterogeneities in the role of banks in the economic development process and their limited role in countries’ transition to knowledge economies.
Table of Contents
Additional Information
Published online: 20 October 2022