Journal ArticleDOI
Equity markets and growth: Cross-country evidence on timing and outcomes, 1980–1995
Peter L. Rousseau,Paul Wachtel +1 more
TLDR
This article applied recent developments in the analysis of panels with a small-time dimension to estimate vector autoregressions for a set of 47 countries with annual data for 1980-1995, and showed leading roles for stock market liquidity and the intensity of activity in traditional financial intermediaries on per capita output.Abstract:
The rapid expansion of organized equity exchanges in both emerging and developed markets has prompted policymakers to raise important questions about their macroeconomic impact, yet the need to focus on recent data poses implementation difficulties for econometric studies of dynamic interactions between stock markets and economic performance in individual countries. This paper overcomes some of these difficulties by applying recent developments in the analysis of panels with a small time dimension to estimate vector autoregressions for a set of 47 countries with annual data for 1980–1995. After describing recent theories on the role of stock markets in growth and considering a pure cross-sectional empirical approach, our panel VARs show leading roles for stock market liquidity and the intensity of activity in traditional financial intermediaries on per capita output. The findings underscore the potential gains associated with developing deep and liquid financial markets in an increasingly global economy.read more
Citations
More filters
Journal ArticleDOI
Does Financial Liberalization Spur Growth
TL;DR: This paper showed that equity market liberalization, on average, leads to a 1% increase in annual real economic growth and that the largest growth response occurs in countries with high-quality institutions.
Journal ArticleDOI
Financing Innovation and Growth: Cash Flow, External Equity, and the 1990s R&D Boom
TL;DR: In this article, the authors estimate dynamic R&D models for high-tech firms and find significant effects of cash flow and external equity for young, but not mature, firms.
Book ChapterDOI
Chapter 12 Finance and Growth: Theory and Evidence
TL;DR: The authors reviewed, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth, concluding that both financial intermediaries and markets matter for growth and that reverse causality alone is not driving this relationship.
Journal ArticleDOI
Stock markets, banks and growth: Panel evidence
Thorsten Beck,Ross Levine +1 more
TL;DR: This article investigated the impact of stock markets and banks on economic growth using a panel data set for the period 1976-98 and applying recent GMM techniques developed for dynamic panels and found that stock markets positively influence economic growth and these findings are not due to potential biases induced by simultaneity, omitted variables or unobserved country-specific effects.
Posted Content
Bank-Based or Market-Based Financial Systems: Which is Better?
TL;DR: This article presented the first broad, cross-country examination of which view of financial structure is more consistent with the data and found that although overall financial development is robustly linked with economic growth, there is no support for either the bank-based or market-based view.
References
More filters
Journal ArticleDOI
Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.
Manuel Arellano,Stephen Bond +1 more
TL;DR: In this article, the generalized method of moments (GMM) estimator optimally exploits all the linear moment restrictions that follow from the assumption of no serial correlation in the errors, in an equation which contains individual effects, lagged dependent variables and no strictly exogenous variables.
Book
The theory of economic development
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
ReportDOI
Economic Growth in a Cross Section of Countries
TL;DR: For 98 countries in the period 1960-1985, the growth rate of real per capita GDP is positively related to initial human capital (proxied by 1960 school-enrollment rates) and negatively related to the initial (1960) level as mentioned in this paper.
Journal ArticleDOI
Finance and Growth: Schumpeter Might Be Right
TL;DR: In this paper, the authors examined a cross-section of about 80 countries for the period 1960-89 and found that various measures of financial development are strongly associated with both current and later rates of economic growth.
Journal ArticleDOI