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Finance and Growth: A Critical Survey

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Author Info
Alex William Trew ()

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Abstract

We present a survey of the finance-growth nexus that raises a number of qualifications to the mainstream interpretation. Doubts regarding empirical consensus are investigated and we consider the prevalence of cross-section econometrics as dominant in shaping the present theoretical consensus. To facilitate a quantitative understanding of the theoretical literature we develop a model capable of capturing a number of key conclusions from theoretical research. The core implications of many finance and growth theories are shown to be disconnected not only from their modern empirical counterparts, but also from the historical literature.

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File URL: http://www.st-andrews.ac.uk/economics/CDMA/papers/wp0507.pdf
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Publisher Info
Paper provided by Centre for Dynamic Macroeconomic Analysis in its series CDMA Working Paper Series with number 0507.

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Date of creation: Jul 2005
Date of revision: Apr 2006
Handle: RePEc:san:cdmawp:0507

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Postal: School of Economics and Finance, University of St. Andrews, Fife KY16 9AL
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Related research
Keywords: finance and growth endogenous growth economic history.

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Find related papers by JEL classification:
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
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913

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References listed on IDEAS
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.:
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  6. repec:cup:macdyn:v:7:y:2003:i:3:p:363-93 is not listed on IDEAS
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    Other versions:
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    Other versions:
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Cited by:
(explanations, 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.)

  1. David Hauner, 2006. "Fiscal Policy and Financial Development," IMF Working Papers 06/26, International Monetary Fund. [Downloadable!]
  2. Alex William Trew, 2007. " Endogenous Financial Development and Industrial Takeoff," CDMA Working Paper Series 0702, Centre for Dynamic Macroeconomic Analysis. [Downloadable!]
  3. Alex William Trew, 2007. " Efficiency, Depth and Growth: Quantitative Implications of Finance and Growth Theory," CDMA Working Paper Series 0712, Centre for Dynamic Macroeconomic Analysis. [Downloadable!]
  4. Max Gillman & Michal Kejak, 2007. " Inflation, Financial Development and Human Capital-Based Endogenous Growth: an Explanation of Ten Empirical Findings," CDMA Conference Paper Series 0703, Centre for Dynamic Macroeconomic Analysis. [Downloadable!]
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