This  paper  takes  stock  of  and  provides  a  critical  review  of  several  literatures,  notably  the theoretical  and  empirical  work  on  finance  and  growth  and  studies  on  the  determinants  of financial development. These two literatures are linked as the sustainable expansion of the financial  sector  is  constrained  by  the  institutional  framework  it  operates  in.  Important interactions between financial sector and institutional development are discussed as well as policy implications and a research agenda going forward.

Authors: Thorsten Beck