Financial Development and Economic Growth : An Overview

Author/Editor:

Mohsin S. Khan ; Abdelhak S Senhadji

Publication Date:

December 1, 2000

Electronic Access:

Free Full Text (PDF file size is 775 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In recent years there has been substantial theoretical and empirical work on the role that financial markets play in fostering economic growth and development. This paper provides a selective review of the literature, as well as new empirical evidence on the relationship between financial development and economic growth for a large cross-section sample of countries. While the results indicate that the effect of financial development on growth is positive, the size of the effect varies with different indicators of financial development, estimation method, data frequency, and the functional form of the relationship.

Series:

Working Paper No. 00/209

Subject:

English

Publication Date:

December 1, 2000

ISBN/ISSN:

9781451874747/1018-5941

Stock No:

WPIEA2092000

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

24

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