Work

Financial development and economic growth: A new empirical analysis

Year: 1999

Type: preprint

Abstract: The paper describes tests of hypotheses from economic history concerning the significance of financial development as a determinant of economic growth. It goes beyond the existing studies in drawing on a large panel data set covering 93 countries from 1970-90 and includes a new proxy for the resource input into the financial system. Moreover, interaction effects between financial development and catching-up as well as education are considered. Finally, to clarify causal relationships, a two-wave path model is estimated. It is shown that during the 1970s and 1980s finance was a significant and predominantly supply-leading determinant of growth.

Source: RePEc: Research Papers in Economics

DOI: 10.2139/ssrn.258928

Author: Michael Graff

Institution: ETH Zurich

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2120630768

Cites: 39

Cited by: 40

Related to: 10