... Stock Markets, Banks, and Economic Growth By Ross LEVINE SARA AND ZERVOS * Do well-functioning stock markets and banks promote long-run economic growth? This paper shows that stock market ... Tables and VOL 88 NO LEVINE AND ZERVOS: STOCK MARKETS, BANKS, AND GROWTH TABLE 7-INlTlAL VOLATILITY, BANKS, GROWTH, AND 1976- 1993 Dependent variables Independent variables Output Growth Capital Stock ... negatively associ- ated with economic growth (see B a r n and VOL 88 NO Capital Stock Growth LEVINE AND ZERVOS: STOCK MARKETS, BANKS, AND GROWTH Productivity Growth Savings Capitalization Value...