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Financial Development and Economic Growth: Views and Agenda
Ross Levine,Ross Levine +1 more
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TLDR
The authors argue that the preponderance of theoretical reasoning and empirical evidence suggests a positive, first-order relationship between financial development and economic growth, and that the development of financial markets and institutions is a critical and inextricable part of the growth process and away from the view that the financial system is an inconsequential sidehow, responding passively to economic growth.Abstract:
This critique argues that the preponderance of theoretical reasoning and empirical evidence suggests a positive, first-order relationship between financial development and economic growth. The body of work would push even most skeptics toward the belief that the development of financial markets and institutions is a critical and inextricable part of the growth process and away from the view that the financial system is an inconsequential sideshow, responding passively to economic growth. Many gaps remain, however, and the paper highlights areas in acute need of additional research.read more
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Finance-LED growth in the OECD since the nineteenth century: How does financial development transmit to growth?
Jakob B. Madsen,James B. Ang +1 more
TL;DR: In this paper, the authors examined the extent to which FD transmits to growth through ideas production, savings, fixed investment, and schooling, and found that ideas production is the most important channel through which FD affects growth.
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Finance Causes Growth: Can We Be So Sure?
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The finance growth nexus: Evidence from sub-saharan Africa
TL;DR: In this article, the authors extended the debate to a sample of eight emerging economies in Sub-Saharan Africa (SSA) using cointegration tests proposed by Johansen and Juselius, and causality tests based on error-correction model.
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Firm performance and international diversification: The internal and external competitive advantages
TL;DR: In this article, the authors examined the relation between the institutional framework of a firm's home country and the firm's development of its internal and external competitive advantages, and whether a firm preference for, or dependency on, either internal or external capabilities affects the relationship between international diversification and firm performance.
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Islamic banking: Good for growth?
Patrick Imam,Kangni Kpodar +1 more
TL;DR: In this paper, the authors investigated the relationship between Islamic banking development and economic growth using a sample of 52 countries with data covering the period 1990-2010 and found that despite its relatively small size compared to the economy and the overall size of the financial system, Islamic banking is positively associated with economic growth.