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. This research agenda addresses both long-term challenges in institution building as well as short- to medium-term solutions for financial deepening and policies that prevent an overshooting of the financial system beyond the sustainable level.
Beck, T. Finance for development: a research agenda. Growth Research Programme, UK (2013) 36 pp. [DEGRP Research Report]