... (1997), “Financial Development and Economic Growth: Views and Agenda”, Journal of Economic Literature, 35, 688-726. Levine, R (1999), “Law, Finance, and Economic Growth , Journal of Financial ... by the banks, which can lead to `too high' real interest rates, bankruptcies of firms and bank failures. That led to the introduction of new elements into the analysis of the financial ... conclude that the link between growth and financial development is not just a contemporaneous correlation and that "finance seems importantly to lead economic growth& quot; (op. cit., p. 730)....