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Income-dependent impacts of financial development and human capital on economic growth. A non-stationary panel analysis

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  • Mohsen MOHAGHEGH

    (Ohio State University, USA)

  • A.S. VALIPOUR

    (Ohio State University, USA)

Abstract

We investigate the interdependency of financial development and human capital on economic development in a cross-country setting. We show that the impacts exhibit interesting variations across different income levels. In fact, human capital is the most important element in fostering economic growth in high-income countries, but its importance falls with the country’s income level. Financial development, however, is relatively more important for mid-income countries but does not seem to have a significant impact on high-income nations. We find that lowincome countries do not benefit as much from either one of these factors.

Suggested Citation

  • Mohsen MOHAGHEGH & A.S. VALIPOUR, 2020. "Income-dependent impacts of financial development and human capital on economic growth. A non-stationary panel analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(625), W), pages 263-274, Winter.
    • Handle: RePEc:agr:journl:v:4(625):y:2020:i:4(625):p:263-274
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