Author: Thorsten Beck
This paper summarises the existing literature on the relationship between the financial and the real sector, and proposes an empirical research agenda going forward. Research should be guided by theory; historic and present-day experiences in developed economies can inform policy dialogue in developing countries.
Professor Thorsten Beck is based at the Cass Business School, London; Tilburg University, The Netherlands; and Centre for Economic Policy Research (CEPR). This paper was written for the ODI under a grant from the DFID-ESRC Growth Research Programme (DEGRP).