Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212817
Authors: 
Fidrmuc, Jarko
Fungáčová, Zuzana
Weill, Laurent
Year of Publication: 
2015
Series/Report no.: 
BOFIT Discussion Papers No. 7/2015
Abstract: 
​The financial crisis has shown that the liquidity creation function of banks is critical for the economy. In this paper, we empirically investigate whether bank liquidity creation fosters economic growth in a large emerging market, Russia. We follow the methodology of Berger and Bouwman (2009) to measure bank liquidity creation using a rich and exhaustive dataset of Russian banks. We perform fixed effects and GMM estimations to examine the relation of liquidity creation to economic growth for Russian regions in the period 2004–2012. Our results suggest that bank liquidity creation fosters economic growth. This effect was not washed out by the financial crisis. Our conclusion thus supports a positive impact of financial development on economic growth in Russia.
JEL: 
E44
G21
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-031-6
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.