Reassessing the Impact of Finance on Growth

By Stephen G. Cecchetti, Enisse Kharroubi. 2012

759 citations recorded by the source corpus.

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Citations in the corpus

Financialisation in emerging economies: a systematic overview and comparison with Anglo-Saxon economies (2017, background): “In the aftermath of the global financial crisis it was acknowledged that situations can emerge where there is ‘too much’ finance in an economy (Cecchetti and Kharroubi 2012, 1).”
Nonlinearities in financial development–economic growth nexus: Evidence from sub-Saharan Africa (2017, background): “Admittedly, studies on the nonlinearities are still inconclusive (Aghion et al., 2005; Cecchetti and Kharroubi, 2012; Shen and Lee, 2006; Law and Singh, 2014; Adeniyi et al., 2015; Favara, 2003) although evidence appear to support the inverted U-shaped.”
Is More Finance Better? Disentangling Intermediation and Size Effects of Financial Systems (2014, background): “2 In doing so the financial 1 Several authors have recently used value added of the financial sector, including Philippon (2008), Philippon and Reshef (2012), and Cecchetti and Kharroubi (2012).”
The Chicago Plan Revisited (2012, background): “5, follows Christiano et al. (2005). The price and wage markups of monopolistically competitive manufacturers and unions are fixed, in line with much of the New Keynesian literature, at 10%, or μp = μw = 1.”
The effects of financialization on investment: evidence from firm-level data for the UK (2018, background): “Recently after the 2007-2008 crash, the disproportionate growth of the financial system has been questioned in some mainstream contributions as well (Cecchetti and Kharroubi, 2012; Beck et al., 2014).”
Institutional quality thresholds and the finance Growth nexus. (2013, background): “…(2011) demonstrate that financial development and economic growth are mutually causal, that is, causality is bidirectional. is consistent with empirical work by Deidda and Fattouh (2002), Rioja and Valev (2004b), Shen and Lee (2006), Ergungor (2008), Hung (2009) and Cecchetti and Kharroubi (2012).”
Financial Structure and Growth (2014, background): “While the results for the lower-income countries are similar to those for the entire sample, only the coefficient on market turnover turns out to 7 The results are consistent with the general finding of Cecchetti and Kharroubi (2012).”
Does too much finance harm economic growth (2014, methodology): “Cecchetti and Kharroubi (2012) find that when the financial sector accounted for more than 3.9% of total employment, further development of finance tended to damage economic growth.”
Effect of financial development on economic growth in sub-Saharan Africa (2018, background): “Some studies (Cecchetti and Kharroubi, 2012; Arcand et al., 2012; Law and Singh, 2014) have found an inverted U-shaped relationship implying that financial development is only good up to a point after which it becomes deleterious although Adeniyi et al. (2015) disagree.”
Economic Growth, Financial Development, and Income Inequality (2017, background): “Cecchetti and Kharroubi (2012) also found that financial development is good for growth only up to a point, and after that it becomes a drag on growth.”
Is the Relationship between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle Income Countries (2015, unknown): “…much of the current literature suggests that the impact of financial deepening on growth becomes negative once a certain threshold is reached (Arcand, Berkes, & Panizza, 2012; Cecchetti & Kharroubi, 2012), or that this impact seems to have evaporated in recent data (Rousseau & Wachtel, 2011).”
Financial development, real sector, and economic growth (2015, background): “Cecchetti & Kharroubi (2012) also find that financial development has an inverted U-shape effect.”