{
  "title": "Financial Development and Source of Growth: New Evidence",
  "publication": "IMF Working Papers, June 28, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/06/28/financial-development-and-source-of-growth-new-evidence-44940",
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  "summary": "This paper examines how financial development affects the sources of growth—productivity and investment—using a sample of 145 countries for the period 1960-2011. We employ a range of econometric approaches, focusing on the CCA and MENA countries.",
  "sections": [
    {
      "heading": "Research question and scope",
      "content": "- Examines how financial development affects the sources of growth—productivity and investment.\n- Employs a range of econometric approaches.\n- Focus includes the CCA and MENA countries.\n- Analysis extends beyond financial depth to capture the access, efficiency, stability, and openness dimensions of financial development."
    },
    {
      "heading": "Key findings",
      "content": "- Financial development does not appear to be a magic bullet for economic growth.\n- The paper cannot confirm earlier findings of an unambiguously positive relationship between financial development, investment, and productivity.\n- The relationship between financial development and the sources of growth is more complex than previously reported.\n- The influence of different dimensions of financial development on the sources of growth varies across income levels and regions."
    },
    {
      "heading": "Methodology (high-level)",
      "content": "- Uses a sample of 145 countries for the period 1960-2011.\n- Employs a range of econometric approaches (details provided in the working paper).\n- Explicitly analyzes multiple dimensions of financial development: depth, access, efficiency, stability, and openness."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Financial institutions; Financial markets; Financial sector development; Income; National accounts; Production; Stock markets; Stocks; Total factor productivity\n- Keywords: Capital Accumulation; capital adequacy ratio; capital stock growth; Financial Development; Financial sector development; Global; Growth; Income; inflation dummy; interest rate; low income; productivity growth; Stock markets; Stocks; Total Factor Productivity; WP"
    },
    {
      "heading": "Summary conclusion",
      "content": "- Broad measures of financial development, incorporating depth, access, efficiency, stability, and openness, do not deliver a uniformly positive effect on investment and productivity across countries.\n- Policy conclusions and region/income-specific effects are nuanced and vary by dimension of financial development; see full working paper for detailed econometric results and policy discussion.\n\nSource: IMF Working Paper \"Financial Development and Source of Growth: New Evidence\" (Working Paper No. 2017/143), Robert Blotevogel, Mark Fischer, and Haiyan Shi, June 28, 2017.\n\n---\n\n Content in this bundle\n\n- Financial Development and Source of Growth: New Evidence, WP/17/143, June 2017\n  - Financial Development and Source of Growth: New Evidence, WP/17/143, June 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Financial Development and Source of Growth: New Evidence, WP/17/143, June 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/06/28/financial-development-and-source-of-growth-new-evidence-44940"
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    "Authors: Robert Blotevogel, Mark Fischer, Haiyan Shi",
    "Published: June 28, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484302637.001",
    "Examines how financial development affects the sources of growth—productivity and investment.",
    "Employs a range of econometric approaches.",
    "Focus includes the CCA and MENA countries.",
    "Analysis extends beyond financial depth to capture the access, efficiency, stability, and openness dimensions of financial development.",
    "Financial development does not appear to be a magic bullet for economic growth.",
    "The paper cannot confirm earlier findings of an unambiguously positive relationship between financial development, investment, and productivity.",
    "The relationship between financial development and the sources of growth is more complex than previously reported.",
    "The influence of different dimensions of financial development on the sources of growth varies across income levels and regions.",
    "Uses a sample of 145 countries for the period 1960-2011.",
    "Employs a range of econometric approaches (details provided in the working paper).",
    "Explicitly analyzes multiple dimensions of financial development: depth, access, efficiency, stability, and openness.",
    "Subject: Financial institutions; Financial markets; Financial sector development; Income; National accounts; Production; Stock markets; Stocks; Total factor productivity",
    "Keywords: Capital Accumulation; capital adequacy ratio; capital stock growth; Financial Development; Financial sector development; Global; Growth; Income; inflation dummy; interest rate; low income; productivity growth; Stock markets; Stocks; Total Factor Productivity; WP",
    "Broad measures of financial development, incorporating depth, access, efficiency, stability, and openness, do not deliver a uniformly positive effect on investment and productivity across countries.",
    "Policy conclusions and region/income-specific effects are nuanced and vary by dimension of financial development; see full working paper for detailed econometric results and policy discussion.",
    "**Financial Development and Source of Growth: New Evidence, WP/17/143, June 2017**"
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