Financial Development and Economic Growth: A Meta-Analysis

Petra Valickova (), Tomas Havranek and Roman Horvath

No wp1045, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

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. The effect seems to be weaker in poor countries, but it 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: pages
Date: 2013-03-01
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Citations: View citations in EconPapers (12)

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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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