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Finance and economic growth: new evidence from time series analysis (1961--2009)

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  • Ernesto R. Gantman
  • Marcelo P. Dabós

Abstract

Using time series techniques that deal with the problem of cross-sectional dependence and relax the constraint that the slope parameters of the independent variables should be the same for all countries, we demonstrate that financial development does not have a significant influence upon economic growth.

Suggested Citation

  • Ernesto R. Gantman & Marcelo P. Dabós, 2013. "Finance and economic growth: new evidence from time series analysis (1961--2009)," Applied Economics Letters, Taylor & Francis Journals, vol. 20(9), pages 893-896, June.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:9:p:893-896
    DOI: 10.1080/13504851.2012.761332
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    References listed on IDEAS

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    1. Felix Rioja & Neven Valev, 2004. "Finance and the Sources of Growth at Various Stages of Economic Development," Economic Inquiry, Western Economic Association International, vol. 42(1), pages 127-140, January.
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    4. Christopoulos, Dimitris K. & Tsionas, Efthymios G., 2004. "Financial development and economic growth: evidence from panel unit root and cointegration tests," Journal of Development Economics, Elsevier, vol. 73(1), pages 55-74, February.
    5. Francis Teal & Markus Eberhardt, 2010. "Productivity Analysis in Global Manufacturing Production," Economics Series Working Papers 515, University of Oxford, Department of Economics.
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    7. Luisa Blanco, 2009. "The Finance–Growth Link in Latin America," Southern Economic Journal, Southern Economic Association, vol. 76(1), pages 224-248, July.
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    9. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
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    Cited by:

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    2. Michiel Bijlsma & Andrei Dubovik, 2014. "Banks, Financial Markets and Growth in Developed Countries: a Survey of the empirical literature," CPB Discussion Paper 266.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

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