Abstract
Economic growth and prosperity go together, although high growth and a deteriorating environment can pose a transitory conflict of interest. The need to maintain natural wealth and human capital has become a major concern of economic policy in western Europe after 1945. While maintaining the stock of real capital via depreciations and reinvestments was considered a natural requirement of capitalism, the concern about the stock of the environment and labor market problems reflects more recent problems. Human capital of many workers in western Europe has been eroded as a consequence of high unemployment which is mainly the result of the two oil price shocks in the 1970s and strong wage pressure with a bias in favor of unskilled workers in EU countries. At the same time technological progress and the shift towards the service industry raised the marginal value product of skilled labor overproportionately — which is one reason why income differentials among workers are growing again in OECD countries (another being the global increase in the unskilled labor supply as a consequence of China’s opening up).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Allen, F. (1993), “Stock Markets and Resource Allocation,” in Mayer, C. P. And Vives, X. (eds.), Capital Markets and Financial Intermediation, Cambridge University Press, Cambridge.
Bank Of England (1995), Quarterly Bulletin, Vol. 35, London.
Bis-Bank Of International Settlements (1995), 65. Jahresbericht, Basle.
Bis-Bank Of International Settlements (1996), 66th Annual Report, Basle.
Black, S. W. and Moersch, M. (1995), “Investment and its Financing During the Transition in Central and Eastern Europe,” Paper presented at AICGS conference ‘Europe’s Economy Looks East’, Washington D.C., May 15–16, 1995.
Boot, A. W. A. and Van Wijnbergen, S. (1995), “Financial Sector Design, Regulation and Deposit Insurance in Eastern Europe,” in Rostowski, J. (ed.), Banking Reform in Central Europe and the Former Soviet Union, Central European University Press, Budapest, 42–57.
Bundesverband Deutscher Banken (1995), “Auswirkungen der Europäischen Wirtschafts-und Währungsunion auf die Finanzmärkte,” Mimeo, Bonn.
Corbett, J. And Mayer, C. (1992), “Financial Reform in Eastern Europe: Progress with the Wrong Model,” Oxford Review of Economic Policy, Vol. 8.
Crockett, A. (1995), “Financial Innovation: Macro-Economic and Macro-Prudential Consequences,” Kredit und Kapital, Vol. 28, 46–61.
Deutsche Bundesbank (1996), “Finanzmarktvolatilität und ihre Auswirkungen auf die Geldpolitik,” Monatsberichte der Deutschen Bundesbank, April, 53–70.
Dimsdale, N. (1994), “Banks, Capital Markets, and the Monetary Transmission Mechanism,” Oxford Review of Economic Policy, Vol. 10, No. 4, 34–48.
Ec Commission (1993), Growth, Competitiveness, Employment, White Paper, Brussels.
Edwards, F. R. and Mishkin, F. S. (1995), “The Decline of Traditional Banking: Implications for Financial Stability and Regulatory Policy,” Federal Reserve Bank of New York Economic Policy Review, July 1995, 27–45.
Eib-European Investment Bank (1995), Annual Report, Luxembourg.
Field, A.J. (1984), “A New Interpretation of the Onset of the Great Depression,” Journal of Economic History, 44, 489–498.
Fratianni, M. and Huang, H. (1995), “New Growth Theory: A Survey from a Policy Perspective,” Kredit und Kapital, Vol. 28, 62–86.
Froot, K. A. and Stein, J. C. (1991), “Exchange Rates and Foreign Direct Investment. An Imperfect Capital Markets Approach,” Quarterly Journal of Economics, November, 1191–1217.
Gerschenkron, A. (1962), Economic Backwardness in Historical Perspective, Cambridge, Mass.
Gerschenkron, A. (1968), Continuity in History and Other Essays, Harvard University Press, Cambridge.
Greenwald, B. and Stiglitz, J. E. (1993), “Financial Market Imperfections and Business Cycles,” Quarterly Journal of Economics, Vol. 108, 77–114.
Hellwig, M. (1994), “Banking and Finance at the End of the Twentieth Century,” Wirtschaftswissenschaftliches Zentrum der Universität Basel, Mimeo.
Honohan, P. (1995), “The Public Policy Role of the European Investment Bank within the EU,” Journal of Common Market Studies, Vol. 33, 315–330.
Imf-International Monetary Fund (1994), World Economic Outlook, October 1984, Washington DC.
Institut Der Deutschen Wirtschaft (IDW), IWD-Mitteilungen, Nr. 39, Cologne.
Jasinski, P. and Welfens, P. J. J. (1994), Privatization and Foreign Direct Investment in Transforming Economies, Dartmouth, Aldershot.
Kaufmann, H. (1994), “Structural Changes in the Financial Markets: Economic and Policy Significance,” Economic Review of the Federal Reserve Bank of Kansas City, 2nd quarter.
Klein, M.W. and Welfens, P.J.J. (1992), Multinationals in the New Europe and Global Trade, Springer, Heidelberg.
Klodt, H. Et Al. (1994), Standort Deutschland: Strukturelle Herausforderungen im neuen Europa, Mohr, Tübingen.
Litan, R. E. (1994), “Financial Regulation,” in Feldstein, M. (ed.), American Economic Policy in the 1980s, University of Chicago Press, Chicago.
Maddison, A. (1991), “Postwar Growth and Slowdown: A Global View,” in Gahlen, B., Hesse, H. and Ramser, H. J. (eds.), Wachstumstheorie und Wachstumspolitik. Ein Neuer Anlauf, Mohr, Tübingen, 23–41.
McKINSEY (1996), Capital Productivity, Washington D.C.
Metzler, L. A. (1951), “Wealth, saving and the rate of interest,” Journal of Political Economy, Vol. 59, 93–116.
Ochel, W. Und Penzkofer, H. (1995), “Internationale Wettbewerbsfähigkeit und ihre Implikationen für die Europäische FuE-Politik,” Mimeo, Ifo-Institut, München.
Oecd (1993), Transformation of the Banking System, Paris.
Oecd (1996), Financial Market Trends, No. 61, Paris.
Plosser, C. I. (1992), “The Search for Growth,” in Policies in Long-Run Economic Growth, Federal Reserve Bank of Kansas.
Rostowski, J. (1995), “The Banking System, Credit and the Real Sector in Transition Economies,” in Rostowski, J. (ed.), Banking Reform in Central Europe and the Former Soviet Union, Central European University Press, Budapest, 16–41.
Schinasi, G. and Hargraves, M. (1995), “‘Boom and Bust’ in Asset Markets in the 1980s: Causes and Consequences,” IMF Staff Studies for the World Economic Outlook, Washington DC, 1–27.
Schröder, K. (1995), “Banking Reforms in East Central Europe,” Intereconomics, Vol. 30, 133–195.
Stiglitz, J. and Weiss, A. (1981), Credit Rationing in Markets with Imperfect Information, American Economic Review, Vol. 71, 393–410.
Tavlas, G. S. and Ozeki, Y. (1992), “The Internationalization of Currencies: An Appraisal of the Japanese Yen,” IMF Occasional Paper No. 90.
Thomas, I. P. (1995), “Konvergenz und Divergenz in der Europäischen Union — Theoretischer Überblick, empirische Evidenz und wirtschaftspolitische Implikationen,” April.
Tilly, R. and Welfens, P. J. J. (1995) (eds.), European Economic Integration as a Challenge to Industry and Government, Springer, New York.
Tobin, J. (1965), Money and Economic Growth, Econometrica, Vol. 33, 671–684.
Unctad (1995), World Investment Report 1995, Geneva.
Unece (1995), Economic Survey of Europe in 1994–1995, Geneva.
Waheed, A. and Mathur, I. (1995), “Wealth Effects of Foreign Expansion by U.S. Banks,” Journal of Banking & Finance, Vol. 19, 823–842.
Welfens, P. J. J. (1992), Market-oriented Systemic Transformations in Eastern Europe, Springer, New York.
Welfens, P. J. J. (1995), European Monetary Integration, 3rd revised and enlarged edition, Springer, New York.
Welfens, P. J. J. (Ed.) (1996a), Economic Aspects of German Unification, 2nd, revised and enlarged edition, Springer, Heidelberg and New York.
Welfens, P. J. J. (1996b), “Wettbewerbs-und Strukturpolitik im Transformationsprozeß: Analyse, Politikoptionen und Implikationen in Rußland,” in GöTz, R. And Grinberg, R. (eds.), Strukturpolitik in Rußland: Materialien einer Konferenz, Bundesinstitut für ostwissenschaftliche und internationale Studien, Sonderveröffentlichung, August.
Welfens, P. J. J. and Jungmittag, A. (1996), “The Political Economy of EMU and Stabilization Policy,” paper presented at the international conference ‘European Monetary Union: Transition, International Impacts and Policy Options’, EIIW, Potsdam, 25.–26. April 1996.
Welfens, P. J. J. and Yarrow, G. (Eds.) (1996), Telecommunications and Energy in Systemic Transformation, Springer, Heidelberg and New York.
World Bank (1989), World Development Report 1989, Oxford University Press for the World Bank, Washington, D.C.
Young, A. (1991), “Learning By Doing and the Dynamic Effect of Trade,” Quarterly Journal of Economics, Vol. 106, 369–405.
Dowd, K. (1992), “Is Banking a Natural Monopoly?” Kyklos, Vol. 45, 379–392.
Fukao, M. and Hanazaki, M (1987), “Internationalisation of Financial Markets and the Allocation of Capital,” OECD Economic Studies, Vol. 8, 35–92.
Heller, D. (1995), “Inflation und Wachstum,” Quartalsheft der Schweizerischen Nationalbank: Geld, Währung und Konjunktur, Vol. 13, 278–288.
Schuler, K. (1992), “The World History of Free Banking: An Overview,” in Dowd, K. (ed.), The Experience of Free Banking, Routledge, London, New York, 7–47.
White, L. H. (1991), “Banking Without a Central Bank: Scotland Before 1844 as a ‘Free Banking System’,” in Capie, F. And Wood, G. E. (eds.), Unregulated Banking: Chaos or Order?, Macmillan, London, 37-62
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1997 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Welfens, P.J.J. (1997). Banks, Capital Markets, R&D and Economic Growth in Europe. In: Welfens, P.J.J., Wolf, H.C. (eds) Banking, International Capital Flows and Growth in Europe. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-59030-6_2
Download citation
DOI: https://doi.org/10.1007/978-3-642-59030-6_2
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-63823-7
Online ISBN: 978-3-642-59030-6
eBook Packages: Springer Book Archive