IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Finance Causes Growth: Can We Be So Sure?

Listed author(s):
  • Manning Mark J


    (University College London)

Registered author(s):

    In recent years, a number of studies have found in favour of a causal link between finance and growth. This paper examines the empirical foundations of such studies, performing some additional econometric tests using the datasets and methodologies of Rajan and Zingales (1998a) and Levine and Zervos (1998). First, we consider the stability of published results across countries at different stages in their economic development, re-estimating Rajan and Zingales specification to allow separate coefficients for OECD and non-OECD member countries. We find that finance has a greater impact upon growth in non-OECD countries, with bank finance of particular importance. Second, we explore the issue of identification, concluding that it is difficult to disentangle the effect of financial development from that of other correlated factors. In particular, we show that the results of these authors depend heavily on the strong performance of the Tiger economies during the 1980s.

    If 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.

    File URL:
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by De Gruyter in its journal The B.E. Journal of Macroeconomics.

    Volume (Year): 3 (2003)
    Issue (Month): 1 (December)
    Pages: 1-24

    in new window

    Handle: RePEc:bpj:bejmac:v:contributions.3:y:2003:i:1:n:12
    Contact details of provider: Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:bpj:bejmac:v:contributions.3:y:2003:i:1:n:12. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.