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The Fading Link? A New Empirical Analysis of the Relationship Between Financial Development and Economic Growth

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Author Info

  • Marcelo P. Dabos

    ()
    (Universidad de Belgrano)

  • Ernesto R. Gantman

    ()
    (Universidad de Buenos Aires)

Abstract

This paper contributes to the literature on the finance-growth link by presenting new findings based on a new, larger dataset that improves over earlier studies in its greater coverage in terms of time periods and countries, as well as the incorporation of additional control variables like institutional quality and the size of the economy. Our results demonstrate that financial development does not have a statistically significant effect on economic growth. We also find that the economy's size is a statistically significant determinant of growth.

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File URL: http://bfi.uchicago.edu/RePEc/bfi/wpaper/BFI_2010-013.pdf
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Bibliographic Info

Paper provided by Becker Friedman Institute for Research In Economics in its series Working Papers with number 2010-013.

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Date of creation: Dec 2010
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Handle: RePEc:bfi:wpaper:2010-013

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Web page: http://bfi.uchicago.edu/
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Related research

Keywords: financial development; economic growth; institutional quality; market size; dynamic panel analysis;

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References

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Cited by:
  1. Pasali, Selahattin Selsah, 2013. "Where is the cheese ? synthesizing a giant literature on causes and consequences of financial sector development," Policy Research Working Paper Series 6655, The World Bank.

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