Nonlinearities and Parameter Instability in the Finance-Growth Nexus

Catherine Prettner ()

No 224, Department of Economics Working Paper Series from WU Vienna University of Economics and Business

Abstract: This paper offers a re-assessment of the finance-growth nexus in a framework that allows to distinguish between short-run versus long-run effects. Our dataset contains information on 45 developed and developing countries over the period 1995-2011. We make use of the integration and cointegration properties of the data, establish a cointegrating relation and derive the long-run elasticities of per capita GDP with respect to employment, the physical capital stock, and financial development. We employ these results to specify an error correction model and assess whether the years of crisis have changed the relationship between finance and growth. (author's abstract)

Keywords: Finance-Growth Nexus; Panel Cointegration; Error Correction Model; Threshold Model; End-of-sample instability (search for similar items in EconPapers)
Date: 2016-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://epub.wu.ac.at/5037/ original version (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (https://epub.wu.ac.at/5037/ [308 PERMANENT REDIRECT]--> https://epub.wu.ac.at/id/eprint/5037 [302 FOUND]--> https://research.wu.ac.at/en/publications/4d9ff12e-8b48-4644-a5e0-19529215e8ff)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wiw:wus005:5037

Access Statistics for this paper

More papers in Department of Economics Working Paper Series from WU Vienna University of Economics and Business Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by WU Library ().