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Desenvolvimento financeiro e crescimento econômico: teoria e evidência empírica para os estados brasileiros (1995-2004)

Author

Listed:
  • Fabrício J. Missio

    (Cedeplar-UFMG)

  • Frederico G. Jayme Jr.

    (Cedeplar-UFMG)

  • Ana Maria H. C. de Oliveira

    (Cedeplar-UFMG)

Abstract

This paper aims at analyzing the relationship between economic growth and financial development on theoretical and empirical grounds. We briefly review the arguments that support the existence or not of a positive and causal relation between these two variables, as well as the arguments that outline the role and influence of financial development upon the economy. Second, an empirical exercise was undertaken using data for the 26 Brazilian states and Distrito Federal (the Brazilian District, where the capital Brasília is located). We estimate quantile regression in order to show the impact of financial development on the dependent variable (the Gross State Product, GSP). We adopted two measures of financial development, one based in the work of King & Levine (1993) and the other in the work of Marques Jr. & Porto Jr. (2004). Empirical results suggest a positive relation between financial development and economic growth.

Suggested Citation

  • Fabrício J. Missio & Frederico G. Jayme Jr. & Ana Maria H. C. de Oliveira, 2010. "Desenvolvimento financeiro e crescimento econômico: teoria e evidência empírica para os estados brasileiros (1995-2004)," Textos para Discussão Cedeplar-UFMG td379, Cedeplar, Universidade Federal de Minas Gerais.
    • Handle: RePEc:cdp:texdis:td379
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    File URL: https://www.cedeplar.ufmg.br/pesquisas/td/TD%20379.pdf
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    References listed on IDEAS

    as
    1. Chenggang Xu & Haizhou Huang, 1999. "Institutions, Innovations, and Growth," American Economic Review, American Economic Association, vol. 89(2), pages 438-443, May.
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    5. Asli Demeirgüç-Kunt & Ross Levine (ed.), 0. "Finance and Growth," Books, Edward Elgar Publishing, number 17119.
    6. Beck, Thorsten & Levine, Ross & Loayza, Norman, 2000. "Finance and the sources of growth," Journal of Financial Economics, Elsevier, vol. 58(1-2), pages 261-300.
    7. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    8. Rousseau, Peter L & Wachtel, Paul, 1998. "Financial Intermediation and Economic Performance: Historical Evidence from Five Industrialized Countries," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 30(4), pages 657-678, November.
    9. By Mohsin S. Khan & Abdelhak S. Senhadji, 2001. "Threshold Effects in the Relationship Between Inflation and Growth," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-1.
    10. Chenggang Xu & Mr. Haizhou Huang, 1999. "Institutions, innovations, and Growth," IMF Working Papers 1999/034, International Monetary Fund.
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    Cited by:

    1. Braga, Marcelo José & Pessoa, Filipe de Morais Cangussu, 2019. "Economic growth and financial development in Brazil: a flexible regression model approach," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.

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    More about this item

    Keywords

    Financial Intermediation; Economic Growth; Quantile Regression; Brazil;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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