Financial Development and Economic Growth: A Meta-Analysis

Tomas Havranek, Roman Horvath and Petra Valickova

Working Papers from Czech National Bank, Research and Statistics Department

Abstract: We analyze 1334 estimates from 67 studies that examine the effect of financial development on economic growth. Taken together, the studies imply a positive and statistically significant effect, but the individual estimates vary widely. We find that both research design and heterogeneity in the underlying effect play a role in explaining the differences in results. Studies that do not address endogeneity tend to overstate the effect of finance on growth. While the effect seems to be weaker in less developed countries, the effect decreases worldwide after the 1980s. Our results also suggest that studies using stock-market-oriented measures as a proxy for financial development tend to report larger positive effects on growth. We find little evidence of publication bias in the literature.

Keywords: Development; finance; growth; meta-analysis. (search for similar items in EconPapers)
JEL-codes: C83 G10 O40 (search for similar items in EconPapers)
Date: 2013-07
New Economics Papers: this item is included in nep-cba, nep-eff and nep-fdg
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Citations: View citations in EconPapers (24)

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https://www.cnb.cz/export/sites/cnb/en/economic-re ... wp/cnbwp_2013_05.pdf

Related works:
Journal Article: FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: A META-ANALYSIS (2015)
Working Paper: Financial Development and Economic Growth: A Meta-Analysis (2013)
Working Paper: Financial Development and Economic Growth: A Meta-Analysis (2013)
Working Paper: Financial Development and Economic Growth: A Meta-Analysis (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2013/05

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