00000nam 2200000za 4500 9.862983 CaOODSP 20221107161151 cr ||||||||||| 181010s2018 oncd ob f000 0 eng d CaOODSP eng eng fre FB3-5/2018-49E-PDF Shao, Lin. Financial development beyond the formal financial market [electronic resource] / by Lin Shao. [Ottawa] : Bank of Canada, 2018. ii, 25, 16 p. : col. charts. Bank of Canada staff working paper, 1701-9397 ; 2018-49 "September 2018." Includes bibliographical references (p. 24-25). "This paper studies the effects of financial development, taking into account both formal and informal financing. Using cross-country firm-level data, we document that informal financing is utilized more by rich countries than poor countries. To account for this empirical pattern, we build a model in which the supply of informal financing increases with financial development, while the demand for informal financing declines with it. The model generates a hump-shaped relationship between the incidence of informal financing and GDP per capita. Our analysis shows that, at the early stage of economic development, the output loss from financial frictions is reinforced by the low supply of informal financing. Informal financing contributes more to the aggregate output of the richest countries than to that of the poorer countries in our sample"--Abstract, p. ii. Includes abstract in French. Finance Informal sector (Economics) Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2018-49. (CaOODSP)9.806221 PDF 510 KB https://publications.gc.ca/collections/collection_2018/banque-bank-canada/FB3-5-2018-49-eng.pdf