IDEAS home Printed from https://ideas.repec.org/a/seg/012016/v5y2020i2p45-58.html
   My bibliography  Save this article

The Finance-Growth Nexus In High And Middle Income Economies

Author

Listed:
  • Wissem Boukraine

Abstract

Despite the abundant literature on the causality between financial development and economic growth; little has been said about the shape of this relationship. In this paper we adopt a nonlinear approach to investigate it in the long run for the G7 and the BRICS economies. We use the Svirydzenka (2016) financial development index which takes into account the depth, the access and the efficiency of both financial markets and financial institutions. The results of the bound testing approach suggest the existing of an inverted U-shaped curve relation in the United States, Japan, Germany, Brazil and Russia which confirms that the “too much finance hypothesis” of Arcand, Berkes and Panizza (2015) not only apply to most high income countries but even to some middle income countries. The U-shaped curve was found in the case of France, the United Kingdom and India. No long run relationship between financial development and economic growth was detected for Italy, Canada, China or South Africa.

Suggested Citation

  • Wissem Boukraine, 2020. "The Finance-Growth Nexus In High And Middle Income Economies," Journal of Smart Economic Growth, , vol. 5(2), pages 45-58, September.
    • Handle: RePEc:seg:012016:v:5:y:2020:i:2:p:45-58
    as

    Download full text from publisher

    File URL: https://jseg.ro/index.php/jseg/article/view/99/83
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:seg:012016:v:5:y:2020:i:2:p:45-58. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu Lixandroiu (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.