Financial Development and Economic Growth: An Overview
December 1, 2000
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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.
Subject: Economic and financial statistics, Financial markets, Financial sector development, Financial statistics, Market capitalization, Securities markets, Stock markets
Keywords: bond market capitalization, financial development, financial markets, Financial sector development, Financial statistics, growth, Market capitalization, market condition, market imperfection, market securities, Securities markets, security market indicator, Stock markets, Sub-Saharan Africa, time variation, WP
Pages:
24
Volume:
2000
DOI:
Issue:
209
Series:
Working Paper No. 2000/209
Stock No:
WPIEA2092000
ISBN:
9781451874747
ISSN:
1018-5941
