Making Abundant Natural Resources Work for Developing Economies

5. Stylized factsTable 1: Summary statistics by financial development category 1984-2003VariableFull sample Financial development bLow Medium HighBank credit (% GDP) 60.80 11.79 60.03 101.96Credit to private sector(% GDP)50.38 20.42 43.14 91.21Naturalintensityresource232.06 410.06 196.32 107.67Real GDP per capitagrowth (annual %)2.07 1.51 1.99 2.74Investment share in 13.82 11.63 12.66 17.74real GDP (%)aSource: Author’s calculations from data from the sources citedbThe financial development categories are determined based on the financial developmentindex(defined under data description). A country is classified in the low, medium or high category if itsfinancial development index belongs to the lower 25 th percentile, between the 25 th and 75 th percentilesand in the upper 75 th percentile, respectively.Table 1 provides a summary of the statistics according to the level of financialdevelopment. According to the statistics, high levels of financial development(irrespective of the indicator used) are associated with high levels of investment andoutput growth. For instance, average credit to the private sector is 91% of GDP in thehigh development category, compared to just 20% in the low category. Additionally,the annual percentage (%) of real GDP per capita is below the full sample average inthe low development category and above average for the high development category.The share of investment in real GDP is about 6% higher in the high developmentcategory than the low development category. In term of all the averages, the middlecategory lies in between the low and high category financial development categories.