The impact of bank-based and market-based financial development on economic growth: time-series evidence from the United Kingdom

Sheilla Nyasha and Nicholas Odhiambo

No 18834, Working Papers from University of South Africa, Department of Economics

Abstract: This paper examines the dynamic impact of both bank-based and market-based financial development on economic growth in the United Kingdom (UK) during the period 1980 to 2012, using the autoregressive distributed lag bounds testing approach. Given the complexity of the financial structure in the United Kingdom, various financial development indicators have been used to construct bank-based and market-based financial development indices. The empirical results of this study show that while market-based financial development has a positive impact on economic growth in the United Kingdom, bank-based financial development has a distinct negative impact. These results apply irrespective of whether the regression analysis is conducted in the long run or in the short run.

Keywords: United Kingdom; UK; Bank-based Financial Development; Market-based Financial Development; Economic Growth (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The Impact of Bank-Based and Market-Based Financial Development on Economic Growth: Time-Series Evidence From the United Kingdom (2016)
Journal Article: The Impact of Bank-Based and Market-Based Financial Development on Economic Growth: Time-Series Evidence From the United Kingdom (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:uza:wpaper:18834

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