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Regional Evidence on the Finance - Growth Nexus

  • Andrea Vaona

The Finance-Growth Nexus is a classical source of debate among economists. This contribution offers regional evidence on this issue in order to see if it can meet the data within a 140 years old economic union -- Italy -, in the ideal context for its main competitor - New Economic Geography - and in order to avoid pooling between developed and developing countries. The results for this application support the view that finance leads growth, reject its possible endogeneity and shows its robustness even in presence of spatial unobserved heterogeneity by using both cross-section and panel data estimators.

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File URL: https://www.ifw-members.ifw-kiel.de/publications/regional-evidence-on-the-finance-growth-nexus/kap1285.pdf
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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1285.

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Length: 35 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:kie:kieliw:1285
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  1. King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 513-542, December.
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  3. 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.
  4. Andrea Vaona & Stefano Schiavo, 2006. "Nonparametric and semiparametric evidence on the long-run effects of inflation on growth," Working Papers hal-01065641, HAL.
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  8. Luc Anselin & Harry H. Kelejian, 1997. "Testing for Spatial Error Autocorrelation in the Presence of Endogenous Regressors," International Regional Science Review, SAGE Publishing, vol. 20(1-2), pages 153-182, April.
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