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Financial deepening and economic growth in developing economics

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  • John Thornton

Abstract

Granger-causality tests on data for 22 Asian, Latin American and Caribbean developing economies suggest that financial deepening does not make much difference to economic growth: for eight countries no lead-lag relationship was detected and in six more economic growth led financial deepening.

Suggested Citation

  • John Thornton, 1996. "Financial deepening and economic growth in developing economics," Applied Economics Letters, Taylor & Francis Journals, vol. 3(4), pages 243-246.
    • Handle: RePEc:taf:apeclt:v:3:y:1996:i:4:p:243-246
    DOI: 10.1080/758520872
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    References listed on IDEAS

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    1. R McKinnon, 1991. "Financial Control in the Transition to a Market Economy," CEP Discussion Papers dp0040, Centre for Economic Performance, LSE.
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    Cited by:

    1. Ebru TOPCU Author- Workplace-Name: Nevsehir Haci Bektas Veli University, Department of Economics, Turkey, 2016. "Reexamining Finance-Growth Nexus: A New Literature Survey," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(Special I), pages 1-7, august.
    2. Rebecca Attah-Annor & Alhassan Bunyaminu, 2016. "Effect of Stock Market Dynamics on Economic Growth: Evidence from Ghana Stock Exchange," International Journal of Financial Markets, Research Academy of Social Sciences, vol. 2(3), pages 69-93.
    3. Mina Baliamoune-Lutz, 2007. "Entrepreneurship, Reforms, and Development: Empirical Evidence," ICER Working Papers 38-2007, ICER - International Centre for Economic Research.
    4. Matthew J. Kromtit & Joseph B. Tsenkwo, 2014. "Recent Trend Of Financial Deepening And Economic Growth: Empirical Evidence From Nigeria’S Data," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 1204-1219.
    5. Halkos, George, 2010. "Financial and real sector interactions:the case of Greece," MPRA Paper 24391, University Library of Munich, Germany.
    6. Munyanyi, Musharavati Ephraim, 2017. "The dynamic relationship between financial development and economic growth: New evidence from Zimbabwe," MPRA Paper 80401, University Library of Munich, Germany.
    7. Ilhan Ozturk, 2007. "Finance–Growth Nexus: Empirical Evidence from South Africa," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 3-17.
    8. Tsangyao Chang & Steven Caudill, 2005. "Financial development and economic growth: the case of Taiwan," Applied Economics, Taylor & Francis Journals, vol. 37(12), pages 1329-1335.
    9. Gladys A. A. Nabieu & Charles Barnor, 2016. "The Effect of Stock Market Performance on Economic Growth in Ghana," International Journal of Financial Economics, Research Academy of Social Sciences, vol. 5(1), pages 12-32.
    10. George E. HALKOS & Marianna K. TRIGONI, 2010. "231 Financial And Real Sector Interactions: The Case Of Greece," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(3(13)/Fal), pages 231-246.
    11. Abdullahil Mamun & Mohammad Hasmat Ali & Nazamul Hoque & Md Masrurul Mowla & Shahanara Basher, 2018. "The Causality between Stock Market Development and Economic Growth: Econometric Evidence from Bangladesh," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(5), pages 212-220, May.
    12. Mina Baliamoune-Lutz, 2009. "Entrepreneurship and Reforms in Developing Countries," WIDER Working Paper Series RP2009-04, World Institute for Development Economic Research (UNU-WIDER).
    13. Antonios Adamopoulos, 2020. "Financial Development and Economic Growth: An Empirical Investigation of three European Union Member - Countries," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(1), pages 3-24.
    14. Sinha, Dipendra & Macri, Joseph, 2001. "Financial development and economic growth: The case of eight Asian countries," MPRA Paper 18297, University Library of Munich, Germany.
    15. OZTURK, Ilhan, 2008. "Financial Development And Economic Growth: Evidence From Turkey," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 85-98.
    16. Muhammad Arshad Khan & Abdul Qayyum, 2007. "Trade Liberalisation, Financial Development and Economic Growth," PIDE-Working Papers 2007:19, Pakistan Institute of Development Economics.

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