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A Survey Of Recent Developments In The Literature Of Finance And Growth

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James B. Ang

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Abstract

This paper provides a survey of the recent progress in the literature of financial development and economic growth. The survey highlights that most empirical studies focus on either testing the role of financial development in stimulating economic growth or examining the direction of causality between these two variables. Although the positive role of finance on growth has become a stylized fact, there are some methodological reservations about the results from these empirical studies. Several key issues unresolved in the literature are highlighted. The paper also points to several directions for future research.

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Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 03/07.

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Length: 43 pages
Date of creation: 01 Mar 2007
Date of revision:
Handle: RePEc:mos:moswps:2007-03

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Postal: Department of Economics, Monash University, Victoria 3800, Australia
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Related research
Keywords: Financial development; financial liberalization; economic growth.;

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Find related papers by JEL classification:
E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment

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