How does financial development affect economic growth: through its impact on accumulation of physical and human capital or by boosting total factor productivity (TFP) growth? We use a new data set on output, inputs, and total factor productivity for the US states to study this question. Unlike previous cross-country research that tries to disentangle the channels through which financial development impacts growth, we use a plausibly exogenous measure of financial development: the timing of banking deregulation across states during the period 1970–2000. At the same time our new data set allows us to go beyond what was previously done in the state banking deregulation literature and identify whether finance impacts states’ input accumulation or TFP growth. We find, in line with existing cross-country studies, that deregulation boosts growth by accelerating both TFP growth and the accumulation of physical capital without having any impact on human capital. In contrast to the cross-country studies, we also find that the effects of deregulation are largely independent of states’ initial level of development; both rich and poor states grow faster after deregulation. Additionally, since our data set breaks down aggregate output into three sectors: agriculture, manufacturing, and the remaining industries, we are able to show that deregulation accelerates the growth of productivity in manufacturing. This last finding answers an important critique of the banking deregulation studies which asserts that observed growth effects may be coming from the growth of financial industry itself and not from the beneficial effect of finance on other industries, such as manufacturing.

中文翻译：

---

资金和增长来源：美国各州的证据

金融发展如何通过对有形和人力资本积累的影响或通过提高全要素生产率（TFP）的增长来影响经济增长？我们使用有关美国各州的产出，投入和全要素生产率的新数据集来研究此问题。与以前的跨国研究试图弄清金融发展影响增长的渠道不同，我们使用一种合理的外生性金融发展衡量方法：1970-2000年间各州银行业放松管制的时机。同时，我们的新数据集使我们能够超越以前在国家银行放松管制中所做的工作文献并确定金融是否会影响州的投入积累或全要素生产率增长。根据现有的跨国研究，我们发现放松管制可以通过加速TFP的增长和物质资本的积累来促进增长，而对人力资本没有任何影响。与跨国研究相比，我们还发现放松管制的影响很大程度上与各州的初始发展水平无关。放松管制之后，富国和穷国都将更快地成长。此外，由于我们的数据集将总产出细分为三个部门：农业，制造业和其余行业，因此我们可以证明，放松管制可以促进制造业生产率的增长。