International Evidence on the Financial Kuznets Curve

Imad Moosa ()
Additional contact information
Imad Moosa: School of Economics, Finance and Marketing RMIT, Melbourne, Australia

Economia Internazionale / International Economics, 2016, vol. 69, issue 4, 365-378

Abstract: The results presented in this study provide cross-sectional evidence on the “financial Kuznets curve”, which is the financial counterpart of the environmental Kuznets curve. It is a representation of the “finance curse”, providing a warning signal against over-dependence on the financial sector. By measuring the degree of financialisation in terms of the ratio of publicly-traded shares to GDP, the results show an inverted U-shaped curve between the GDP growth rate and financialisation. The negative effect of financialisation on growth materialises much more quickly in high growth countries. Evidenze internazionali sulla curva della finanza di Kuznets Questo studio presenta evidenze cross-section sulla “curva della finanza di Kuznets”, che è l’equivalente in ambito finanziario della curva ambientale di Kuznets. Essa è la rappresentazione della “maledizione finanziaria” e fornisce segnali di allarme sull’eccessiva dipendenza dal settore della finanza. Misurando il grado di “finanziarizzazione” in termini di rapporto quotazioni borsisitiche/PIL, i risultati mostrano una curva ad U inversa tra il tasso di crescita del PIL e la “finanziarizzazione”. L’effetto negativo di quest’ultima sulla crescita si materializza molto più velocemente nei paesi con tassi di crescita elevati.

Keywords: Environmental Kuznets Curve; Financial Kuznets Curve; Finance Curse; Financialisation (search for similar items in EconPapers)
JEL-codes: G00 G01 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.iei1946.it/upload/rivista_articoli/allegati/116_moosaric100517.pdf Full text (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:ris:ecoint:0785

Access Statistics for this article

Economia Internazionale / International Economics is currently edited by Giovanni Battista Pittaluga

More articles in Economia Internazionale / International Economics from Camera di Commercio Industria Artigianato Agricoltura di Genova Via Garibaldi 4, 16124 Genova, Italy. Contact information at EDIRC.
Bibliographic data for series maintained by Angela Procopio ().