Can Dynamic Panel Data Explain the Finance-Growth Link? An Empirical Likelihood Approach

Umut Oguzoglu () and Thanasis Stengos

Review of Economic Analysis, 2011, vol. 3, issue 2, 129-148

Abstract: The short run effect of the financial intermediary development on economic growth is ana- lyzed using an unbalanced panel of 77 countries covering 35 years. Empirical Likelihood (EL) estimation is used and compared to more conventional GMM methods that weight moment conditions equally over the sample. However, if a part of the data is associated with only weak instruments, GMM estimators are subject to considerable small sample bias. EL appropriately re-weights the moment restrictions to deal with that problem. Using EL, we obtain more robust estimates of the effect of financial intermediation on economic growth than GMM.

Keywords: economic growth; financial intermediation; empirical likelihood; dynamic panel data models (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rofea.org/index.php?journal=journal&pag ... %5D=60&path%5B%5D=61 (application/pdf)

Related works:
Working Paper: Can Dynamic Panel Data Explain the Finance-Growth Link? An Empirical Likelihood Approach (2005)
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:ren:journl:v:3:y:2011:i:2:p:129-148

Access Statistics for this article

Review of Economic Analysis is currently edited by Dr. Jerzy (Jurek) Konieczny

More articles in Review of Economic Analysis from Digital Initiatives at the University of Waterloo Library
Bibliographic data for series maintained by Dr. Jerzy (Jurek) Konieczny ().