Finance and growth: Schumpeter might be wrong in our era. New evidence from Meta-analysis

Simplice A , Asongu (2011): Finance and growth: Schumpeter might be wrong in our era. New evidence from Meta-analysis. Unpublished.

Abstract

This paper seeks to bridge the gap between Schumpeterian authors and sympathizers of Andersen and Tarp (2003). As far as we have perused, the absence of a meta-study in the finance-growth nexus literature is an important missing link. Methodically narrowing down from 186 papers to a summary of 20 studies with 197 outcomes, we use 20 comparison criteria to evaluate which factors have influenced the phenomenon over the past decades. Using dynamics of financial depth and financial activity, our meta-findings provide support for Andersen and Tarp (2003) in concluding that contrary to Schumpeterian authors, the positive link between finance and growth has not been sufficiently sustained by recent empirical works. The frequency of financial crisis that inhibit the finance-led-growth nexus is more preponderant in our era than it was in the days of Schumpeter. The study also accounts for the presence of publication bias in the literature which further vindicates an anti-Schumpeterian thesis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Meta analysis; Finance; Economic growth; Publication bias
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; O - Economic Development, Technological Change, and Growth > O1 - Economic Development; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General; C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics

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