05408oam 22013094 450 991078870040332120230828235802.01-4623-6999-51-4527-6932-X1-283-51685-397866138293061-4519-0831-8(CKB)3360000000443856(EBL)3014357(SSID)ssj0001475053(PQKBManifestationID)11825361(PQKBTitleCode)TC0001475053(PQKBWorkID)11472044(PQKB)10943075(OCoLC)698585570(MiAaPQ)EBC3014357(IMF)WPIEE2006035(EXLCZ)99336000000044385620020129d2006 uf 0engtxtccrDoes Economic Diversification Lead to Financial Development? Evidence From topography /Rodney RamcharanWashington, D.C. :International Monetary Fund,2006.1 online resource (45 p.)IMF Working Papers"January 2006."1-4518-6295-4 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. EMPIRICAL FRAMEWORK AND DATA OVERVIEW""; ""III. MAIN RESULTS""; ""IV. SENSITIVITY ANALYSES""; ""V. DISCUSSION""; ""References""An influential theoretical literature has observed that economic diversification can reduce risk and increase financial development. But causality operates in both directions, as a well functioning financial system can enable a society to invest in more productive but risky projects, thereby determining the degree of economic diversification. Thus, ordinary least squares (OLS) estimates of the impact of economic diversification on financial development are likely to be biased. Motivated by the economic geography literature, this paper uses instruments derived from topographical characteristics to estimate the impact of economic diversification on the development of finance. The fourth estimates suggest a large and robust role for diversification in shaping financial development. And these results imply that, by impeding financial sector development, the concentration of economic activity common in developing countries can adversely affect financial and economic development.IMF Working Papers; Working Paper ;No. 2006/035Economic developmentEconometric modelsFinanceEconometric modelsBanks and BankingimfFinance: GeneralimfMacroeconomicsimfIndustries: ManufacturingimfDemographyimfIndustrializationimfManufacturing and Service IndustriesimfChoice of TechnologyimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancial Markets and the MacroeconomyimfDemographic Economics: GeneralimfIndustry Studies: Manufacturing: GeneralimfEconomic Development: GeneralimfFinanceimfBankingimfPopulation & demographyimfManufacturing industriesimfEconomic growthimfFinancial sector developmentimfBank depositsimfPopulation and demographicsimfManufacturingimfFinancial marketsimfFinancial servicesimfEconomic sectorsimfFinancial services industryimfBanks and bankingimfPopulationimfSouth AfricaimfEconomic developmentEconometric models.FinanceEconometric models.Banks and BankingFinance: GeneralMacroeconomicsIndustries: ManufacturingDemographyIndustrializationManufacturing and Service IndustriesChoice of TechnologyBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancial Markets and the MacroeconomyDemographic Economics: GeneralIndustry Studies: Manufacturing: GeneralEconomic Development: GeneralFinanceBankingPopulation & demographyManufacturing industriesEconomic growthFinancial sector developmentBank depositsPopulation and demographicsManufacturingFinancial marketsFinancial servicesEconomic sectorsFinancial services industryBanks and bankingPopulationRamcharan Rodney1464150International Monetary Fund.Research Dept.DcWaIMFBOOK9910788700403321Does Economic Diversification Lead to Financial Development? Evidence From topography3673712UNINA