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Two to tangle: Financial development, political instability and economic growth in Argentina

  • Campos, Nauro F.
  • Karanasos, Menelaos G.
  • Tan, Bin

This paper studies the impact of financial liberalization on economic growth. It contributes to this literature by using an innovative econometric methodology and a unique data set of historical series. It presents power ARCH estimates for Argentina for the period from 1896 to 2000. The main results show that the long-run effect of financial liberalization on economic growth is positive while the short-run effect is negative, albeit substantially smaller. Interestingly, we find that financial development affects growth only directly, that is, not through growth volatility.

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Article provided by Elsevier in its journal Journal of Banking & Finance.

Volume (Year): 36 (2012)
Issue (Month): 1 ()
Pages: 290-304

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Handle: RePEc:eee:jbfina:v:36:y:2012:i:1:p:290-304
Contact details of provider: Web page: http://www.elsevier.com/locate/jbf

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