Shen, Leilei2013-11-072013-11-072013-08-01http://hdl.handle.net/2097/16758This paper examines how much financial development facilitates economic growth by nonparametrically estimating the e ffect of fi nancial development on reducing the costs of external fi nance to fi rms. The data reveal substantial evidence of diminishing returns to improvement in financial development.en-USThis Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s).http://rightsstatements.org/vocab/InC/1.0/Financial dependenceGrowthSemiparametric estimationArticle (author version)