Financial Development And Growth: A Panel Smooth Regression Approach
AbstractIn this paper, we propose an original framework to determine the relative influence of series of variables on the linkage between financial development and economic growth. Based on panel threshold regression models, we establish country-specific and time-specific finance-growth coefficients for 71 countries, both developed and developing, from 1960 to 2004. The results show that inflation rate, ratio of government consumption, degree of openness to trade and financial development affect the non-linearity between financial development and growth, and have the greatest influence on the relationship of two variables.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.
Volume (Year): 35 (2010)
Issue (Month): 1 (March)
Panel Smooth Regression Models; Financial Development; Growth;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Deidda, Luca & Fattouh, Bassam, 2002.
"Non-linearity between finance and growth,"
Elsevier, vol. 74(3), pages 339-345, February.
- Gilbert Colletaz & Christophe Hurlin, 2008.
"Threshold Effects in the Public Capital Productivity: An International Panel Smooth Transition Approach,"
- Gilbert Colletaz & Christophe Hurlin, 2006. "Threshold Effects of the Public Capital Productivity : An International Panel Smooth Transition Approach," Working Papers halshs-00008056, HAL.
- Bruce E. Hansen, 1997.
"Threshold effects in non-dynamic panels: Estimation, testing and inference,"
Boston College Working Papers in Economics
365, Boston College Department of Economics.
- Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
- Neven Valev & Felix Rioja, 2002.
"Finance and the Sources of Growth at Various Stages of Economic Development,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0217, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Felix Rioja & Neven Valev, 2004. "Finance and the Sources of Growth at Various Stages of Economic Development," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 127-140, January.
- L. Deidda, 1999.
"Interaction between Economic and Financial Development,"
Working Paper CRENoS
199913, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Deidda, Luca G., 2006. "Interaction between economic and financial development," Journal of Monetary Economics, Elsevier, vol. 53(2), pages 233-248, March.
- Fouquau, Julien & Hurlin, Christophe & Rabaud, Isabelle, 2008.
"The Feldstein-Horioka puzzle: A panel smooth transition regression approach,"
Elsevier, vol. 25(2), pages 284-299, March.
- Julien Fouquau & Christophe Hurlin & Isabelle Rabaud, 2007. "The Feldstein-Horioka Puzzle: a Panel SmoothTransition Regression Approach," Working Papers halshs-00156688, HAL.
- Thanasis Stengos & Andreas Savvides & Theofanis Mamuneas & Elena Ketteni, 2007.
"Is the Financial Development and Economic Growth Relationship Nonlinear?,"
AccessEcon, vol. 15(14), pages 1-12.
- Elena Ketteni & Theofanis P. Mamuneas & Thanasis Stengos & Andreas Savvides, 2005. "Is the Financial Development and Economic Growth Relationship Nonlinear?," Working Papers 0501, University of Guelph, Department of Economics.
- Alexandru Minea & Patrick Villieu, 2008. "Un réexamen de la relation non linéaire entre déficits budgétaires et croissance économique," Revue économique, Presses de Sciences-Po, vol. 59(3), pages 561-570.
- Huiran Pan & Chun Wang, 2013. "Financial Development And Economic Growth: A New Investigation," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(1), pages 27-46, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kyttack Hong).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.