Financial Development and Economic Growth - New Data and Empirical Analysis

Download

124-123-1-PB.pdf

Date

2001

Author

Graff, Micheal

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

186
views

86
downloads

The paper discusses the significance of financial development as a determinant of economic development. An empirical analysis is based on panel data covering 93 countries from 1970-90. It draws on a new proxy for financial development that refers to the input of real resources into the financial system. Moreover, interaction effects between financial development and catching-up as well as education are considered. Finally, to clarify the structure of causal relationships, a two-wave path model is estimated. It is shown that finance was predominantly a supply-leading determinant of growth. From about 1975-80, however, financial activity worked considerably less beneficially.

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/124/95
https://hdl.handle.net/11511/58557

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

Suggestions

OpenMETU
Core

Financial development and energy consumption in emerging markets: Smooth structural shifts and causal linkages Durusu-Ciftci, Dilek; Soytaş, Uğur; NAZLIOĞLU, ŞABAN (Elsevier BV, 2020-03-01) This study examines the dynamic interrelationships among financial development, energy consumption, and economic growth in emerging markets by focusing on accounting for structural changes in causal linkages. We first employ the Toda-Yamamoto causality framework and then augment it with a Fourier approximation which captures structural shifts as a gradual/smooth process. The empirical findings show that taking into account gradual structural shifts matters for the causal linkages between financial developme...
Financial development and energy consumption in emerging markets: structural shifts in causal linkages Durusu Çiftçi, Dilek; Soytaş, Uğur; Nazlıoğlu, Şaban (null; 2018-11-03) This study examines dynamic causal interrelationships among financial development, energy consumption, and economic growth in the emerging markets by focusing on accounting for structural changes in causal linkages. We first employ the Toda-Yamamoto causality framework and later augment it with Fourier approximation to account for structural shifts – including gradual/smooth shifts. The empirical findings show that accounting for gradual structural shifts matter for the causal linkages between financial dev...
Investment climate parameters in transition economies : the case of Russia Nikitin, Sergei; Özveren, Eyüp; Department of Economics (2003) This thesis incorporates institutional definition of the economies in transition into the economic analysis of the investment variable. Probability environment of the real world is another point of analysis. Decision-making framework is analyzed and incorporated into analysis as well. Thesis tries to answer questions such as: Why same projects are treated differently in different circumstances. Finally the Russian experience is investigated and used to prove hypothesis about investment climate parameters an...
Financial development, financial openness and growth: an empirical investigation Ünaldı Akgün, Burçin; Özmen, Erdal; Department of Economics (2011) The economic literature posits that a well-functioning economy requires a well-regulated financial system, and a sound financial system is essential to the fundamentals of an economy, however, even the most influential economists disagree sharply about the role of the finance-growth relationship in economic development. One of the most important questions concerning financial openness is whether it spurs long-run economic growth, and if yes, do these benefits outweigh the risks for developing countries. In ...
Multiregional social accounting matrix and multiplier analysis: an application for Turkish economy Erdoğan, Eda; Voyvoda, Ebru; Department of Economics (2011) Social accounting matrix (SAM) is one of the tools used in regional economic analysis, enabling understanding the structure of the economy as well as analyzing the impacts of policies or exogenous shocks. In this thesis, a two-region SAM of Turkey is constructed for the year 2002 and the findings of multiplier analysis are presented. To this end, first, a two-region input-output (I-O) table is constructed using location quotient (LQ) method and using this two-region I-O table, a two-region SAM is compiled. ...

Citation Formats

M. Graff, “Financial Development and Economic Growth - New Data and Empirical Analysis,” ODTÜ Gelişme Dergisi, vol. 28, no. 1, pp. 83–110, 2001, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/124/95.