Finance and Growth Nexus: What Role for Institutions in Developed and Developing Countries?
Helmi Hamdi, Abdelaziz Hakimi, and Rashid Sbia ()
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Helmi Hamdi, Abdelaziz Hakimi, and Rashid Sbia: Aix-Marseille University CERGAM (4225), Faculty of Law, Economics and Management of Jendouba, and Ministry of Finance
Authors registered in the RePEc Author Service: Helmi HAMDI () and
Rashid Sbia ()
Journal of Economic Development, 2017, vol. 42, issue 4, 1-22
The main purpose of this paper is to investigate the relationship between financial sector development and economic growth taking into consideration the role of institutions quality. Our sample is on a group of 143 countries observed during the period of 2006-2013. The sample is dived into 100 developing and 43 developed countries. Using structural GMM the paper shows that financial sector plays a crucial role in economic development and growth for the whole sample as well as for developed and developing countries. However, the results show that unlike developing countries, developed countries enjoyed the presence of proper institutions in their countries which in turn have contributed further to the development of their financial sector.
Keywords: Finance; growth; institutions; developed and developing countries (search for similar items in EconPapers)
JEL-codes: C23 E44 G0 O0 (search for similar items in EconPapers)
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Working Paper: Finance and Growth Nexus: What Role for Institutions in Developed and Developing Countries? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:jed:journl:v:42:y:2017:i:4:p:1-22
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