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http://bura.brunel.ac.uk/handle/2438/9596
Title: | Is the relationship between financial development and economic growth monotonic? evidence from a sample of middle income countries |
Authors: | Samargandi, N Fidrmuc, J Ghosh, S |
Keywords: | Financial development;Economic growth;Pooled mean group estimation;Dynamic panel threshold;Non-monotonicity |
Issue Date: | 2015 |
Publisher: | Elsevier |
Citation: | World Development, 68: 66 - 81, (April 2015) |
Abstract: | We revisit the relationship between financial development and economic growth in a panel of 52 middle-income countries over the 1980-2008 period. Using pooled mean group estimations in a dynamic heterogeneous panel setting, we show that there is an inverted U-shaped relationship between finance and growth in the long-run. In the short run, the relationship is insignificant. This suggests that too much finance can exert a negative influence on growth in middle-income countries. The finding of a non-monotonic effect of financial development on growth is confirmed by estimating a threshold model. |
URI: | http://www.sciencedirect.com/science/article/pii/S0305750X14003684 http://bura.brunel.ac.uk/handle/2438/9596 |
DOI: | http://dx.doi.org/10.1016/j.worlddev.2014.11.010 |
ISSN: | 0305-750X |
Appears in Collections: | Dept of Economics and Finance Research Papers |
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