03021nam 2200601Ia 450 991080887470332120200520144314.01-4623-6999-51-4527-6932-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)99336000000044385620060313d2006 uf 0engurcnu||||||||txtccrDoes economic diversification lead to financial development? evidence from topography /prepared by Rodney Ramcharan1st ed.[Washington, D.C.] International Monetary Fund, Research Dept.20061 online resource (45 p.)IMF working paper ;WP/06/35"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 paper ;WP/06/35.Economic developmentEconometric modelsFinanceEconometric modelsEconomic developmentEconometric models.FinanceEconometric models.Ramcharan Rodney1642161International Monetary Fund.Research Dept.MiAaPQMiAaPQMiAaPQBOOK9910808874703321Does economic diversification lead to financial development4195195UNINA