The Finance and Growth Nexus Re-Examined: Do All Countries Benefit Equally?
By Adolfo Barajas, R. Chami, Reza Yousefi. Social Science Research Network, 2013
153 citations recorded by the source corpus.
A large theoretical and empirical literature has focused on the impact of financial deepening on economic growth throughout the world. This paper contributes to the literature by investigating whether this impact differs across regions, income levels, and types of economy. Using a rich dataset for 150 countries for the period 1975–2005, dynamic panel estimation results suggest that the beneficial effect of financial deepening on economic growth in fact displays measurable heterogeneity; it is generally smaller in oil exporting countries; in certain regions, such as the Middle East and North Africa (MENA); and in lower-income countries. Further analysis suggests that these differences might be driven by regulatory/supervisory characteristics and related to differences in the ability to provide widespread access to financial services.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/b25b70662a783ae8b300610d12618fe76ff5ba90
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In Economics and Econometrics
Citations in the corpus
- Islamic Finance:Opportunities, Challenges, and Policy Options (2015, background): “Thus, there may be a cost in foregone economic growth when financial services in a country do not reach a sufficiently large share of the population (Barajas, Chami, and Yousefi 2013).”