Sarkar, Prabirjit (2011): Does finance matter for growth? what the data show.
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This paper analyses the relationship between financial development (as measured by expansion of domestic credit to private sector relative to GDP) and growth for a sample of 65 less developed countries over a long period, 1980-2006. Using causality tests at various lag-orders we find a strong evidence of mutual causation. We have used alternative dynamic panel data models to estimate the relationships between the two. While the mean group model suggests no relationship in either direction, the pooled mean group model and dynamic fixed effect model show two opposite long-term relationships: finance-to-growth relationship is negative whereas growth-to-finance link is positive.
|Item Type:||MPRA Paper|
|Original Title:||Does finance matter for growth? what the data show|
|English Title:||Does Finance Matter for Growth? What the Data Show|
|Keywords:||financial development, growth, dynamic panel data analysis|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O50 - General
G - Financial Economics > G2 - Financial Institutions and Services > G20 - General
|Depositing User:||Dr P SARKAR|
|Date Deposited:||22. Aug 2011 12:23|
|Last Modified:||16. Feb 2013 05:22|
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