Financial Development and Economic Growth: A Meta-Analysis

Petra Valickova, Tomas Havranek and Roman Horvath
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Petra Valickova: Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, http://ies.fsv.cuni.cz/

No 2013/04, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: We analyze 1334 estimates from 67 studies that examine the effect of financial development on economic growth. Taken together, the studies imply a positive and statistically significant effect, but individual estimates vary a lot. We find that both research design and heterogeneity in the underlying effect play a role in explaining the differences in results. Studies that do not address endogeneity tend to overstate the effect of finance on growth. While the effect seems to be weaker in poor countries, the effect decreases worldwide after the 1980s. Our results suggest that stock markets support faster economic growth than other financial intermediaries. We find no evidence of publication bias in the literature.

Keywords: finance; development; growth; meta-analysis (search for similar items in EconPapers)
JEL-codes: C83 G10 O40 (search for similar items in EconPapers)
Pages: 37pages
Date: 2013-05, Revised 2013-05
New Economics Papers: this item is included in nep-dev, nep-ent and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (109)

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Related works:
Journal Article: FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: A META-ANALYSIS (2015)
Working Paper: Financial Development and Economic Growth: A Meta-Analysis (2013)
Working Paper: Financial Development and Economic Growth: A Meta-Analysis (2013)
Working Paper: Financial Development and Economic Growth: A Meta-Analysis (2013)
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