Arbeitspapier
State dependence in the finance-growth nexus: A functional coefficient approach
Noting that 'one size does not fit all' in the case of the finance-growth (FG) nexus, a growing body of literature has recently focused on uncovering economic conditions under which financial development could be beneficial (detrimental) to economic development. We look into these conditions by means of a flexible semiparametric approach which allows the long-run FG nexus to depend on measurable economic states. Using annual data for 74 economies spanning the period 1975-2005, we find that the level of financial development shows a strong positive impact on the FG nexus. Moreover, although the impact of finance on growth is generally higher in high-income economies, allowing for intra-group variations reveals scenarios where the impact could be higher in low-income economies. However, the FG link could also be negative if low- and lower-middle-income economies have very large governments or are extremely open to international trade.
- Sprache
-
Englisch
- Erschienen in
-
Series: cege Discussion Papers ; No. 156
- Klassifikation
-
Wirtschaft
Semiparametric and Nonparametric Methods: General
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
Financial Institutions and Services: Government Policy and Regulation
- Thema
-
finance-growth nexus
financial development
economic growth
functional coefficient model
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Herwartz, Helmut
Walle, Yabibal M.
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Göttingen, Center for European, Governance and Economic Development Research (cege)
- (wo)
-
Göttingen
- (wann)
-
2013
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:25 MESZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Herwartz, Helmut
- Walle, Yabibal M.
- University of Göttingen, Center for European, Governance and Economic Development Research (cege)
Entstanden
- 2013
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