Does financial development affect growth?
Author InfoKarima Saci Gianluigi Giorgioni Ken Holden Abstract This article contributes to the literature on the relationship between financial development and economic growth in three ways: it utilizes recently developed techniques for generalized methods of moments (GMM) one-step estimation with dynamic panel models, it focuses exclusively on a sample of developing countries and it uses as proxies for financial development variables which capture both banking sector and stock market effects. The results provide evidence, based on a panel of annual data for 30 developing countries, that while the stock market variables are positively and significantly related to growth, their presence results in the standard banking sector variables, credit to the private sector and liquid liabilities, having negative effects on growth. Download InfoTo download: If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be conta
