What role does the financial sector play in development?

The financial sector can be a critical force in development, but also a source of fragility. What research already exists on the role of the sector and where should we go from here? A new DEGRP Report by Thorsten Beck explores existing research on the relationship between the financial and the real sector, and proposes a new research agenda. 

This literature considers both the effect of finance on real sector outcomes, as well as policies, institutions and interventions to foster sustainable financial deepening. 

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