Finance and growth nexus: An international analysis across cities

Stefanos Ioannou and Dariusz Wójcik
Additional contact information
Stefanos Ioannou: University of Oxford, UK
Dariusz Wójcik: University of Oxford, UK

Urban Studies, 2021, vol. 58, issue 1, 223-242

Abstract: We examine the relationship between finance and economic growth in the metropolitan areas of 75 countries at various stages of economic development in the period 2001–2015. Our analysis demonstrates an inverted-U shaped relationship between finance and growth. This relationship becomes even more significant in the areas of a country outside its largest financial centre, indicating that while these areas can benefit from financial development, they are also the most vulnerable. We show that large financial centres can have an impact on growth across their national economies, but in doing so they complement rather than replace local financial centres. Overall, our results highlight the risks associated with the excesses of financial development and lend evidence to support calls for more decentralised financial systems.

Keywords: economic growth; finance; financial centres; financial sector size; urban economy; ç» æµŽå¢žé•¿; 金èž; é‡‘èž ä¸­å¿ƒ; é‡‘èž éƒ¨é—¨è§„æ¨¡; åŸŽå¸‚ç» æµŽ (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0042098019889244 (text/html)

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:sae:urbstu:v:58:y:2021:i:1:p:223-242

DOI: 10.1177/0042098019889244

Access Statistics for this article

More articles in Urban Studies from Urban Studies Journal Limited
Bibliographic data for series maintained by SAGE Publications ().