ECONOMIC GROWTH AND FINANCIAL SECTOR DEVELOPMENT

Hsin-Yu Liang and Alan Reichert

The International Journal of Business and Finance Research, 2007, vol. 1, issue 1, 68-78

Abstract: This paper estimates an Odedokun-type supply-leading model of financial sector development (FSD) which incorporates both banking and capital market variables as potential drivers of economic growth. The current findings illustrate the impact on economic growth of various measures of FSD which includes basic intermediation services, as measured by M2 and money market mutual funds, and more advanced financial products such as stock market development and risk management services. The empirical findings in this study document an important shift from an exclusive reliance on basic banking services among emerging/developing countries towards an expanding role for the capital markets. An even stronger emphasis on the role of capital markets is documented for a group of advanced countries.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/ijbfre/ijbfr-v1n1-2007/IJBFR-V1N1-2007-7.pdf (application/pdf)

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:ibf:ijbfre:v:1:y:2007:i:1:p:68-78

Access Statistics for this article

The International Journal of Business and Finance Research is currently edited by Terrance Jalbert

More articles in The International Journal of Business and Finance Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).