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Financial revolution and economic modernisation in Sweden

Ögren, Anders LU (2009) In Financial History Review 16(1). p.47-71
Abstract
With this article I aim to contribute to the ongoing debate on the relationship
between finance and growth. It explores whether Sweden in the nineteenth
century experienced what has been labelled a financial revolution. I define a financial revolution as: the establishment of the fundamental organisations and institutions required for a successful financial system within a relatively short time span. To test the occurrence of such a financial revolution we expect a number of institutional and organisational changes that govern financial activities to be followed by an increase in financial activity in different financial sectors. We also expect this increase in financial services to be followed by economic growth at large and... (More)
With this article I aim to contribute to the ongoing debate on the relationship
between finance and growth. It explores whether Sweden in the nineteenth
century experienced what has been labelled a financial revolution. I define a financial revolution as: the establishment of the fundamental organisations and institutions required for a successful financial system within a relatively short time span. To test the occurrence of such a financial revolution we expect a number of institutional and organisational changes that govern financial activities to be followed by an increase in financial activity in different financial sectors. We also expect this increase in financial services to be followed by economic growth at large and specifically within newer industries. Empirical research on the relationship between finance and growth generally ends up testing the connection between one or a few single proxies that represent financial sector development and general growth in GDP. Thus it usually misses out on three important aspects of the financial revolution: (1) the simultaneous and interlinked development of the financial system as a whole; (2) the qualitative improvement of the financial system; and (3) the importance of the financial revolution for creative destruction by forcing structural change through economic modernisation. (Less)
Please use this url to cite or link to this publication:
author
publishing date
type
Contribution to journal
publication status
published
subject
in
Financial History Review
volume
16
issue
1
pages
25 pages
publisher
Cambridge University Press
external identifiers
  • scopus:68349141858
ISSN
0968-5650
DOI
10.1017/S0968565009000043
language
English
LU publication?
no
id
9a64652c-f79f-45ba-a330-8a3c02f4d49f
date added to LUP
2017-12-18 15:09:43
date last changed
2018-01-07 12:29:24
@article{9a64652c-f79f-45ba-a330-8a3c02f4d49f,
  abstract     = {With this article I aim to contribute to the ongoing debate on the relationship<br/>between finance and growth. It explores whether Sweden in the nineteenth<br/>century experienced what has been labelled a financial revolution. I define a financial revolution as: the establishment of the fundamental organisations and institutions required for a successful financial system within a relatively short time span. To test the occurrence of such a financial revolution we expect a number of institutional and organisational changes that govern financial activities to be followed by an increase in financial activity in different financial sectors. We also expect this increase in financial services to be followed by economic growth at large and specifically within newer industries. Empirical research on the relationship between finance and growth generally ends up testing the connection between one or a few single proxies that represent financial sector development and general growth in GDP. Thus it usually misses out on three important aspects of the financial revolution: (1) the simultaneous and interlinked development of the financial system as a whole; (2) the qualitative improvement of the financial system; and (3) the importance of the financial revolution for creative destruction by forcing structural change through economic modernisation.},
  author       = {Ögren, Anders},
  issn         = {0968-5650},
  language     = {eng},
  number       = {1},
  pages        = {47--71},
  publisher    = {Cambridge University Press},
  series       = {Financial History Review},
  title        = {Financial revolution and economic modernisation in Sweden},
  url          = {http://dx.doi.org/10.1017/S0968565009000043},
  volume       = {16},
  year         = {2009},
}