Two to tangle: Financial development, political instability and economic growth in Argentina

Nauro Campos, Menelaos G. Karanasos and Bin Tan

Journal of Banking & Finance, 2012, vol. 36, issue 1, 290-304

Abstract: This paper studies the impact of financial liberalization on economic growth. It contributes to this literature by using an innovative econometric methodology and a unique data set of historical series. It presents power ARCH estimates for Argentina for the period from 1896 to 2000. The main results show that the long-run effect of financial liberalization on economic growth is positive while the short-run effect is negative, albeit substantially smaller. Interestingly, we find that financial development affects growth only directly, that is, not through growth volatility.

Keywords: Economic growth; Financial development; Volatility; Political instability; Power-ARCH (search for similar items in EconPapers)
JEL-codes: C14 D72 E23 O40 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (45)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:36:y:2012:i:1:p:290-304

DOI: 10.1016/j.jbankfin.2011.07.011

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