Further Evidence on the Finance and Growth Causality Avoiding measuring the Indirect Impact of Pro-Market Institutional Framework and Monetary Policy
AbstractThis paper uses the fact that there are different accesses to financial markets in Brazilian counties to test the hypothesis that finance development has a positive impact on GDP growth, through some cross section regressions. The advantages of such tests with respect to those relying on cross country regressions is that there are not institutional differences or monetary policy setup that are strongly correlated with finance development proxies. Therefore, the tests forwarded are able to better disentangle the impact of finance development from institutional and monetary policy effects. The results confirm the hypothesis that finance development boosts economic growth, although it is not possible to identify if this effect is only temporary, while the economy is in a transitional dynamics or if its impact is on the equilibrium growth rate.
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 InfoPaper provided by Datamétrica Consultoria Econômica in its series Working Papers with number 57.
Length: 33 pages
Date of creation: 2011
Date of revision: 2011
Contact details of provider:
Postal: Rua Luis Guimaraes, no 207, Poco de Panela, Recife/PE
Phone: +55 (081) 3267 1500
Fax: +55 (081) 3267 1512
Web page: http://184.108.40.206/
More information through EDIRC
Economic growth; finance development; growth regressions; finance and growth.;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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.:
- Robert J. Barro, 2012.
"Inflation and Economic Growth,"
CEMA Working Papers
568, China Economics and Management Academy, Central University of Finance and Economics.
- James B. Ang, 2008.
"A Survey Of Recent Developments In The Literature Of Finance And Growth,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 22(3), pages 536-576, 07.
- James B. Ang, 2007. "A Survey Of Recent Developments In The Literature Of Finance And Growth," Development Research Unit Working Paper Series 03-07, Monash University, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirelle Queiroz).
If references are entirely missing, you can add them using this form.