Financial Liberalisation and Economic Growth: A Panel Data Approach
The purpose of this paper1 is to examine the effects of financial development on economic growth before and after the implementation of financial reforms. Using panel data averaged on five years we have carried out an empirical study including initially 43 countries covering five years intervals period from 1970 to 1994. However, the estimations concerning this period have given contradictory results and turned out to be insufficient to explain the influence of financial development on economic growth. We think that these unexpected findings may be results of the mixing of the countries, which have repressed their financial sectors with those, which have implemented financial reforms over two decades. Therefore, we have analysed the influence of financial development on economic growth before and after the implementation of financial reforms. The results show that, financial reforms could have positive effect on financial development in some cases and hence accelerate the economic growth.
Volume (Year): 7 (2003)
Issue (Month): 27 ()
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